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What happened: Alibaba and Amazon both saw explosive growth over the past decade, seeing all-time high annual net revenue in 2021 as consumers doubled down on online shopping. But both companies now find themselves at uniquely challenging points in their corporate histories as they undergo unique transitions. For Alibaba, that has meant intervention by the Chinese government. At Amazon, Andy Jassy replaced Jeff Bezos as CEO in 2021. Why it matters: Alibaba announced on Tuesday that it would split into six different groups. Jack Ma, the company's billionaire co-founder who stepped away as executive chairman in 2019, reportedly helped make the deal happen, signaling a potential thaw in his problems with the government. Where to see the impact: Ma said that he believes Alibaba's split will make the company more nimble, according to the Wall Street Journal's reporting. Post-split performance will prove him right or wrong. At Amazon, Q1 2023 results will be closely watched to see whether the company is paced to avoid a second annual loss in a row after a $2.7B hit in 2022. |
