Alibaba has announced a reshuffle for its e-commerce division food delivery.

The price of BABA is showing some weakness near the $117.91 level and there is a risk of further lows. A move above that resistance can see the rally continue.
Alibaba Group (NAS100:BABA) has an ambitious plan to restructure its core consumer-facing business, consolidating food delivery platform Ele.me and travel portal Fliggy into a new e-commerce unit. CEO Eddie Wu has called the move a “strategic upgrade” with the goal of shifting from the old marketplace model to an integrated consumer platform, driven by AI.
The stock has been preparing for changes with a 33% gain year-to-date and further upside may not come without a market catalyst.
Alibaba recently reported a strong Q4 result, with revenue up 7% year-on-year to $32.58 billion, and adjusted earnings up 36% to $4.5 billion. The company saw a big jump in net income, up 1,203% to $1.65 billion.
Cloud growth is still a driver of the stock’s performance with AI product revenue growing by saw triple-digit for the last seven quarters.
However, the company has a “Strong Buy” consensus rating from analysts, with an average price target of $161.26, which would be another 41% from current levels.