Alibaba Projects $60B GMV for 2024, Plans New Business Model Breakthroughs
Portfolio Pulse from Anusuya Lahiri
Alibaba Group Holding Limited (NYSE:BABA) projects $60 billion in GMV for its B2B platform Alibaba.com in 2024, marking a 20% increase from last year. The company plans new business model breakthroughs to sustain growth. Despite competition from PDD Holdings Inc (NASDAQ:PDD), Alibaba focuses on small business sourcing and local ecosystems. Recent initiatives include Alibaba Guaranteed and AI tools to enhance B2B sourcing. Alibaba reported fiscal Q4 2023 revenue growth of 7% Y/Y to $30.73 billion, beating analyst expectations, but adjusted earnings per ADS missed slightly.
June 07, 2024 | 2:26 pm
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POSITIVE IMPACT
Alibaba projects $60 billion GMV for 2024, a 20% increase. The company plans new business model breakthroughs and has introduced new services like Alibaba Guaranteed and AI tools. Despite competition, Alibaba focuses on small business sourcing. Q4 revenue grew 7% Y/Y, but adjusted earnings per ADS missed slightly.
The projected GMV increase and new business model initiatives are positive indicators for Alibaba's future growth. The recent revenue beat also adds to the positive sentiment, although the slight miss in adjusted earnings per ADS and net income drop may temper enthusiasm.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
PDD Holdings Inc's Temu app competes with Alibaba's B2B platform. PDD's value-for-money strategy and Temu marketplace have helped it surpass Alibaba in market value.
While PDD's competitive positioning is mentioned, the primary focus of the article is on Alibaba's projections and initiatives. The impact on PDD is more indirect, related to competitive dynamics rather than specific financial metrics.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50