Why Alibaba's Stock Is Moving Lower Today

Alibaba Group Holding Ltd (NYSE:BABA) shares are trading lower in the pre-market session on Tuesday. The stock’s movement comes in the wake of the company’s announcement of a new CEO and the continuation of its restructuring plan.

What’s Going On: On Monday, Alibaba announced that Eddie Wu will succeed Daniel Zhang as its chief executive, a move that will free Zhang to focus on the company’s cloud intelligence business.

This succession plan comes after China’s largest e-commerce company said in March it will restructure its company into six business groups in the most significant reorganization in its history, CNBC reported.

The company also announced that Joe Tsai will take Zhang’s place as the group’s chairman. Zhang will continue to lead the Alibaba Cloud Intelligence Group as chairman and chief executive after this change, which the company said will take effect on Sept. 10.

Price Action: Alibaba shares traded 2.29% lower in the pre-market session on Tuesday at $89.99, according to data from Benzinga Pro.

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