Alibaba.com (BABA) announced Sunday that former CEO and Chairman Daniel Zhang will also leave as head of Alibaba’s cloud business, signaling a more abrupt transition for the Chinese internet giant.
BABA shares fell sharply in trading in Hong Kong.
Eddie Wu, co-founder of Alibaba, is now acting head of the cloud department. Wu also officially succeeded Zhang as CEO of Alibaba Group. Brooklyn Nets owner Joe Tsai took over as chairman.
Zheng announced in June that he would step down as head of the overall business, but he was expected to lead the cloud division in the long term. That is part of a large organization with several Alibaba units that are run independently. The cloud unit is expected to pursue its own public listing.
Alibaba’s U.S. shares fell 5.2% to 90.05 last week, falling below the 50-day and 200-day ranges.
Follow Ed Carson on X/Twitter at @IBD_ECarson for stock market updates and more.
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