Alibaba Splits Into 6 Business Groups, Potential IPO's?
Morning Tendies
April 03, 2023
Good Morning!
Tendies on a Monday? That’s right, we’re making some changes around here…
Last week we were extremely quiet, and that's because we've been making some changes. But finally, it's time to announce the big news.
Tell your family. Tell your friends. Tell your distant cousin you haven’t talked to in years. Morning Tendies is moving to a daily newsletter!!
Here’s the New Format for Morning Tendies:
Every morning, we will send out the daily newsletter 30 minutes before market open, or 9 am EST.
The edition you’re reading today will be very similar to the new format, except for a couple more changes. Today, it’s more focused on what happened throughout last week - because we didn’t send out a recap last saturday. Typically it will be what happened the previous day rather than the whole week.
Here, let me give you an example:
Tomorrow, Tuesday's edition will cover:
What Happened Monday in the Stock Market
Important Earnings and Economic Events Happening
And Much More!
Alright, I’ll shutup you get the point.
Let’s Dive In!!!
📈 Markets
🖖 Alibaba to split into 6 units and explore IPO’s. Alibaba (BABA) announced Tuesday it will split its company into six business groups, each with the ability to raise outside funding and go public. Each business group will be managed by its own CEO and board of directors. The split is “designed to unlock shareholder value and foster market competitiveness”
What are the groups?
Cloud Intelligence Group
Taobao Tmall Commerce Group
Local Services Group
Cainiao Smart Logistics
Global Digital Commerce Group
Digital Media and Entertainment Group
❌ Continued Layoffs. The list of companies laying off employees continues this week as economic outlook worsens.
Electronic Arts (EA) reducing the size of workforce by 6%
Roku (ROKU) reducing the size of workforce by 6%
Pinterest (PINS) plans to lay off 4% of workforce
Lucid Motors (LCID) plans to lay off ~18% of workforce
Warner Music (WMG) will cut 4% of global staff
🇺🇸 Economic Data. Last week we also some important economic data come in.
PCE for February came in at +5% YoY, below expectations of +5.1%
U.S. Q4 GDP growth was revised to 2.6%
U.S. pending home sales rose for third straight month in February
💰 Earnings
Micron (MU)
EPS of ($1.91) missing ($0.88) estimate
Revenue of $3.69B missing $3.71B estimate
Lululemon (LULU)
EPS of $4.40 beating $4.26 estimate
Revenue of $2.77B beating $2.70B estimate
Walgreens (WBA)
EPS of $1.16 beating $1.10 estimate
Revenue of $34.86B beating $33.53B estimate
What we’re watching this week:
Wednesday: Conagra Brands
Thursday: Levi Strauss & Co
🌎 What Else is Happening?
Energy Transfer gains after $1.45B deal to buy Lotus Midstream - (MW)
Brookfield, EIG private equity consortium buying Origin Energy for $12.4B - (MW)
Blackbaud rejects $71-a-share takeover offer from Clearlake as too low (B)
Hertz CFO Kenny Cheung to leave company - (MW)
First Citizens to acquire Silicon Valley Bank from FDIC - (NYT)
FDIC faces $23B in costs from bank failures - (BBG)
🍗 Tendie Time
A Roundup of Stuff We Find Interesting, Informative, or Just Plain Funny
HubSpot co-founder and CTO, Dharmesh Shah talks about business ideas built on the back of ChatGPT - My First Million Podcast
Substack opens up a $2 million community fundraising round - TechCrunch
NBA to lift marijuana ban for this season in new contract - HuffPost
Banking 101: What you need to know, and what causes bank runs - Medium
Quote of the Day:
“Every Problem is a Gift, Without Problems We Would Not Grow”
😂 Meme Refresher
That’s it for today!!
I know this was a bit of a weird one and it’s because we’re switching formats.
I would LOVE your feedback on the new daily format.
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research