Positive for Alibaba

From Nasdaq: 2024-08-28 09:45:00

Alibaba faces tough competition and government crackdown as it struggles in recent years. Despite this, positive indicators show signs of stabilization in the latest earnings results, with growth in online orders and gross merchandise value, and an increase in premium members to 42 million.

Alibaba’s core e-commerce business is under pressure from competitors like PDD Holdings and Douying. However, the company’s new focus on user satisfaction, lower prices, and AI technology is showing promising results with double-digit growth in online orders and improvements in customer service.

Alibaba’s overseas e-commerce and cloud computing segments are performing well, with revenue growth of 32% and 6%, respectively. The company’s strategic investments in these areas aim to reduce its reliance on local e-commerce and drive long-term growth potential.

Alibaba continues its share buyback program, spending $5.8 billion in the latest quarter to repurchase 2.3% of its total shares. This move aims to enhance shareholder value and improve per-share earnings for existing investors. The company still has $26.1 billion authorized for future buybacks until March 2027.

Despite modest quarterly revenue growth of 4%, Alibaba is showing positive signs in its turnaround efforts. Investors should monitor the company’s performance in upcoming quarters. The Motley Fool Stock Advisor recommends considering other investment opportunities alongside Alibaba, citing its potential for monster returns.

Alibaba’s efforts to improve user satisfaction, diversify revenue streams, and buy back shares signal a positive trajectory for the company. Investors are advised to closely monitor Alibaba’s performance and consider potential investment opportunities for long-term growth and profitability.



Read more at Nasdaq: 3 Reasons I’m Cautiously Optimistic About Alibaba’s Recovery