Shares of Alibaba (BABA:US) are moving sharply higher this week after the Chinese internet titan said it plans to break up into 6 business units to unlock enhanced shareholder value.

The company confirmed the plans yesterday after several media outlets broke the story about new developments. In the biggest restructuring move in its 24-year history, the company believes such actions can boost the valuations of its holdings.

“The original intention and fundamental purpose of this reform is to make our organisation more agile, shorten decision making links and respond faster," Chief Executive Daniel Zhang said in a letter to staff, which was seen by Reuters.

The new business units are: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.

CEO Zhang plans to head the Cloud Intelligence Unit, which is likely to attract the highest interest from investors.

Analysts praised Alibaba’s management and see the troubled stock outperforming the market in the coming months.

"We point to: 1) an inflection in customer management revenue (CMR) on the back of consumption recovery in China; and 2) announced corporate restructuring to unlock Alibaba's value as we believe it will shift the market's perspective to value the company on a sum-of-the-parts perspective," Morgan Stanley analysts wrote.

Given a massive pullback in Alibaba shares recently, the stock hasn’t attracted attention from Congress and Senate members lately. Congressman Jim Langevin was selling shares in early 2022, while they were trading above $120 apiece.

Alibaba stock closed at $98.42 on Tuesday, or 14.2% higher.