A plan to split Alibaba Group Holding Ltd. into six units sent the company’s stock soaring Tuesday while introducing a potential model for global tech giants facing mounting breakup pressures.
In addition, US tech giants like Meta Platforms Inc. and Amazon.com Inc. could be ripe for breakups due to privacy concerns and to unlock value in stock prices that are well off all-time highs, according to Jim Osman, founder of special situations research firm The Edge Consulting Group.
“This has changed the environment for looking at these big tech names that have been under pressure to do this,” he said. If Amazon separates its cloud and subscription services units, the company could deliver a breakup value that’s 70% above its current share price, Osman said. Meta’s WhatsApp and Instagram businesses are also not being valued appropriately, he said.