Alibaba Group Holding Ltd (NYSE:BABA) new CEO, Daniel Zhang, knows the company well and it appears that the Chinese electronic commerce giant made a sound decision in picking its next chief executive, Leslie Picker tells her colleagues in a discussion on Bloomberg Surveillance.
In the discussion, it was revealed that Alibaba Group Holding Ltd (NYSE:BABA) has chosen a new chief executive officer in the person of Zhang as the company also announced quarterly revenue for its just-ended quarter that beat analysts’ expectations.
“What this company has been through over the past six months, it’s not surprising that they would make some kind of management shift. Now, CEO, on the other hand, that was definitely a surprise and it is clear that they are looking for someone who still knows Alibaba,” Picker tells her colleagues, adding, “Daniel Zhang has been with the company for a very long time, almost since its beginning. It appears that he has been with them for at least the last eight years. He is someone who knows Alibaba.”
According to the Bloomberg correspondent, Zhang is an operator by nature and he has previously worked at Taobao which makes him a leader who could hopefully drive the business forward. Picker also notes and the shares in premarket trading seem to be agreeing with Alibaba Group Holding Ltd (NYSE:BABA)’s choice for a new CEO as well as the numbers they saw reported by the company for its most recent quarter. In pre-market trading, the company’s stock was up about 7%, Bloomberg notes.
As for those numbers churned out by the company in the January to March quarter, Picker says that they are positive.
“It’s interesting because in a lot of the analyst notes pontificating on today’s earnings, they were looking at it and saying, ‘We would be surprised if there was a beat to the [topline]. It looks like they have at least accomplished that in terms of revenue and so that hopefully will do something to temper some of the skepticism surrounding Alibaba’s ability to weather the Chinese economy slowdown as well as competition,” Picker says.
She adds that Alibaba Group Holding Ltd (NYSE:BABA) investors look like they are happy, at least in pre-market trading, about the results of the company’s just-ended quarter and the changes the company is making.
Stanley Druckenmiller’s Duquesne Capital owned 253,900 shares in Alibaba Group Holding Ltd (NYSE:BABA) by the end of 4Q2014. The stake for 2.58% of Duquesne Capital’s whole portfolio and increased a whopping 2,439% quarter over quarter.
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