Ma’s Departure and the Trade War Will Not Stop Alibaba Stock
Founder Jack Ma stepped down as chairman, a role that now belongs to current CEO Daniel Zhang. Although leadership transitions always bring some degree of uncertainty, it so far does not look like a factor that will hurt Alibaba stock. Source: zhu difeng / Shutterstock.com. However, several external issues have held down BABA stock. Many worry about the change in leadership. However, Alibaba made the transition a years-long process that has involved little in the way of surprise. Thus far, it looks like it will resemble that of Tim Cook taking over at Apple (NASDAQ:AAPL) as opposed to the transition that preceded Jeff Immelt’s disastrous tenure at GE (NYSE:GE). Since Zhang has become a known quantity, I do not see Alibaba making radical changes. Would an end to the trade war help? Since the beginning of the trade dispute hurt Alibaba stock, it stands to reason that BABA may recover some of that lost value. However, the status of Alibaba Group as a Chinese company, as well as the nature of Alibaba stock itself, will probably prevent it from achieving a significantly higher valuation.