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Business Units

All articles tagged with #business units

finance2 years ago

"Jim Cramer's Reminder: The Optionality of the Magnificent 7 for Investors"

CNBC's Jim Cramer highlights the optionality of six companies known as the "Magnificent Seven" - Tesla, Amazon, Meta, Apple, Microsoft, and Alphabet - emphasizing their potential for reshaping their businesses and creating stock value. Cramer points out that these companies have numerous divisions and moving parts, allowing them to split up, trim losing divisions, or sell extraneous assets, potentially propelling their stocks up billions of dollars. He notes that Nvidia, primarily a graphics card company, lacks the same level of optionality. Cramer emphasizes that the strength of these companies lies in their flexibility to spin off or invest further in business units, regardless of public opinion.

business2 years ago

Advance Auto Parts Implements Major Overhaul, Cuts Costs and Sells Business Units

Advance Auto Parts plans to cut costs by $150 million through a new cost reduction program, which includes the sale of two business units and the elimination of the top ecommerce spot. The company reported a third-quarter loss of $48.6 million and has seen its shares fall 60% this year. The CEO stated that these actions are part of a comprehensive review to position the company for long-term success and create value for shareholders. Advance Auto Parts also announced the appointment of a new CFO, Ryan Grimsland.

business2 years ago

Alibaba's Split and Layoff Concerns Raise Investor Red Flags.

Alibaba's latest restructuring into six independently run business units has sparked concerns among employees about potential layoffs, following a reduction of headcount by about 20,000 in 2022. The shift away from CEO Daniel Zhang's centralized approach has also weakened his influence, with Trudy Dai taking charge of the Taobao Tmall Commerce Group and Jiang Fan becoming CEO of the Global Digital Commerce Group. Zhang will remain Chair and CEO of Alibaba Group but will also be the CEO of the Cloud Intelligence Group. Alibaba's shares traded lower by 1.18% at $97.15 premarket on the last check Wednesday.

business2 years ago

Alibaba's Massive Restructuring Sets Example for Amazon and Alphabet.

Alibaba has announced a new organizational structure, dividing itself into six business units, each with an independent board of directors and CEO. This move has sent shares higher and may prompt Amazon and Alphabet to consider similar restructuring plans. The six business units include cloud intelligence, internet retail, mapping, transactions, logistics, and digital media.

business2 years ago

Ford to Unveil First-Ever EV Losses and Dealer Program Changes

Ford Motor will begin reporting its financial results by business unit, instead of by region, revealing how much the transition to electric vehicles is costing. The new business units include Ford Blue, Model e, Ford Pro, Ford Next, and Ford Credit. The company is expected to release profits and losses, revenue, margins, and earnings before interest and taxes for each of the units, giving investors and analysts a baseline for comparisons as the company's transformation unfolds. Ford's current bread and butter is vehicles with internal combustion engines, specifically its F-Series pickups, which have topped U.S. sales charts for more than 40 years.