Dear all Alibaba, since hitting a post-result intraday high of HKD97.95 on 11 Aug, it has slumped 14.9% to close HKD83.40 on 10 Oct. At HKD83.40, Alibaba trades at 9.3x FY24F and 8.5x FY25F PE. Its financial year ends in Mar. On 26 Sep, Alibaba submitted a spin-off proposal for its Cainiao (click HERE) to the Hong Kong Stock Exchange and the Hong Kong Stock Exchange has confirmed that the Company may proceed with the Proposed Spin-off. A spin-off listing application has been submitted to the Hong Kong Stock Exchange. All in, it looks pretty positive. Why is Alibaba trading at near three-month low level and single digit forward PEs? Firstly, why did Alibaba’s slump 14.9% since 11 Aug? Some possible reasons for Alibaba’s tumble are

1. a) Abrupt change in leadership

On 10 Sep, Alibaba announced that Daniel Zhang will relinquish his Chairman and CEO role at Alibaba Cloud Intelligence Group. This followed its Jun announcement that Daniel will step...