Along with its quarterly results, Alibaba $BABA told us the news that it has approved the spin-off of its cloud unit. Alibaba on Thursday approved the full spin-off of Cloud Intelligence Group, aiming to complete the spin-off in the next 12 months.
Question for investors who hold BABA stock - Are you happy with the spin-off of Cloud Intelligence Group?
On the results - The company posted revenue of 208.20 billion yuan ($30.12 billion) for the three months ended March, compared with Refinitiv's consensus estimate of 210.3 billion yuan.
Non-GAAP earnings per share: 1.34 yuan vs. expectations of 2.08 yuan
I wasn't expecting that. I had high expectations for $BABA, although I didn't invest in it. So I'm glad I didn't miss out.
Mixed feelings too, $BABA will lose profit
That's pain... the only thing I trusted about Alibaba anymore...
So the designation as a separate unit is not such a surprise, it was to be expected when they announced the possibilities for the IPO that this would be among the first. But what surprised me is the method and that it will then be distributed to existing shareholders as a dividend. I hadn't counted on this at all and thought that the cash/shares would be siphoned off or that BABA would buy back the shares.