By Dhirendra Tripathi
Investing.com – Alibaba ADRs (NYSE:BABA) were trading 1.3% higher in Monday’s premarket after the company said it will reorganize its international and domestic ecommerce businesses.
The company said it will form two new units -- international digital commerce and China digital commerce -- as it attempts to take on nimbler players and accelerate growth.
The international ecommerce unit will include AliExpress which sells to retail buyers, particularly those in Europe and Latin America, its Southeast Asian ecommerce business Lazada and Alibaba.com.
The ADRs closed 8.2% lower Friday at their lowest in over four and a half years, and have lost more than a third of their value since end of October, as the company comes under enhanced scrutiny from China’s internet regulators.
Last month, the company reported 8.5% growth in gross merchandise volume at its 11-day Single’s Day online fest, the first time in history that growth slipped below 10%.
Alibaba said it will focus on its three major strategies of domestic demand, globalization, and Cloud computing, a fast-growing business for online firms and a major revenue earner for American rival Amazon (NASDAQ:AMZN).
The company also said it will have a new CFO from April onward with Toby Xu replacing Maggie Wu.