Alibaba SPLIT Into 6 Companies! Here's Why #shorts

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Alibaba, the Chinese multinational technology company, has announced a major reorganization by splitting the company into six separate business entities. The purpose of this move is to stimulate growth by focusing on the core business activities of Alibaba such as cloud computing, e-commerce, and streaming. Each entity will have its own CEO and board of directors while seeking their own financing, and it is intended that each business group will go through an IPO to raise capital for their growth initiatives. While the official reason for this reorganization is to remain competitive following a period of stagnant growth, some speculate that the Chinese government may have forced Alibaba to decentralize its resources and market share, in response to the government's antitrust actions against Big Tech. There is a concern that investing in foreign markets can be risky due to differences in geopolitical factors, such as war and authoritarian governments. However, there are also excellent companies outside of the US that have thrived with the support of their governing bodies. To mitigate geopolitical risks, investors should consider diversifying across several countries, as they would diversify across US industries.

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