Alibaba shares slide 9% after it shelves cloud spinoff, citing U.S. chip restrictions
Publishing timestamp: 2023-11-16 12:46:49
Summary
Alibaba's stock sank 9% after the company announced it was canceling plans to spin out its cloud computing division due to U.S. chip export restrictions. The company stated that the restrictions have made it harder for Chinese firms to obtain critical chip supplies from U.S. companies. Alibaba's decision marks a setback in its reorganization plans, and its stock has fallen 1% since the beginning of the year. The company reported lower-than-expected net income for the September quarter but met revenue expectations. Alibaba's chairman reassured investors about the company's financial position and its ability to invest in growth. The company also announced plans to issue its first-ever annual cash dividend in 2023. Alibaba intends to focus on its core businesses and invest in its cloud business as part of the Alibaba Group.
Sentiment: NEGATIVE
Tickers: 700-HK, BABA, BIDU, MSFT, NVDA, META, AMZN,
Keywords: breaking news: technology, breaking news: asia, earnings, investment strategy, amazon.com inc, nvidia corp, baidu inc, united states, dividends, economy, asia economy, internet, microsoft corp, tencent holdings ltd, business news, alibaba group holding ltd, meta platforms inc, technology,
Source: https://www.cnbc.com/2023/11/16/alibaba-q2-2023-earnings-for-september-quarter-.html