Alibaba (BABA) gains 13.6% in 3 months driven by international commerce business growth.

From Nasdaq: 2024-09-19 11:40:00

Alibaba (BABA) shares have outperformed the market with a 13.6% gain in the past three months. The company’s international commerce business, including Lazada and AliExpress, is driving growth. However, challenges like global uncertainties and competition from Amazon and eBay pose risks to its future prospects.

With solid momentum in international e-commerce, Alibaba’s AliExpress Choice and supply-chain services are major positives. The company is expanding its supplier base and enhancing user experiences globally with AI technology. Initiatives like Logistics Marketplace for SMEs in the U.S. and partnerships with retailers like Magazine Luiza are driving growth in the AIDC business.

Alibaba’s long-term outlook is bright, with estimates pointing to revenue growth of 7% and earnings growth of 1% in fiscal 2025. The company’s strong balance sheet and cash flow allow for shareholder-friendly initiatives like share repurchases and dividend payments. Its attractive valuation and Value Score of A make it an appealing investment opportunity.

Investors should weigh Alibaba’s strengths in international commerce and solid liquidity against macroeconomic uncertainties and market risks. While the company’s long-term prospects remain strong, current conditions necessitate caution. Investors holding Alibaba stock may choose to stay invested, while others may wait for a better entry point.



Read more at Nasdaq: BABA Gains 13.6% in 3 Months: Can AIDC Strength Drive the Stock?