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Technology Stocks : Alibaba Group Holding Limited
BABA 179.98+1.8%3:59 PM EDT

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To: Glenn Petersen who wrote (855)3/29/2023 8:20:35 AM
From: Sun Tzu   of 882
 
It is highly debatable if Amazon is better off splitting, which is why Amazon has resisted calls for splitting up.

Operating under a single umbrella allows Amazon (and Alibaba) to smooth out the earnings cycle of the entire business as each division maps differently during the economic cycle.

Even more importantly, it allows for open communication and collaboration between different businesses verticals. Retail is able to openly discuss its problems and ask the cloud division or AI for solutions. Media is able to share their object recognition and voice with other units, and so on.

Finally, the collective is able to make better and bigger investments than each individual unit could.

None of these are possible when a business is split up.

Of course, the prerequisite for these benefits is a a friendly and cooperative corporate culture and competent management across the board. A collection of silos is arguably better off splitting when each is big enough to stand on its own.
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