Alibaba's potential turnaround in 2025 is supported by China's monetary policy and strong earnings

From Nasdaq: 2024-12-19 10:06:00

Alibaba’s potential turnaround in 2025 is supported by China’s monetary policy and strong Q2 earnings of $33.7 billion. Key highlights include record-high active consumers, increased monetization capabilities, and a successful 11.11 Global Shopping Festival with 46 million 88VIP members.

Alibaba Cloud drives growth with 7% revenue increase and triple-digit growth in AI products. Plans for Southeast Asia expansion and an 89% EBITA increase reflect operational efficiency. The International Digital Commerce segment sees 29% revenue growth, with $50.2 billion in net cash supporting strategic investments and share buybacks.

Despite underperformance, Alibaba’s outlook for 2025 is positive. China’s economic stimulus, AI and cloud investments, and strong financials indicate growth potential. Analysts project 5.95% revenue growth to $138.26 billion, with a 11.5% earnings revision. The stock’s discounted valuation and strong fundamentals make it an attractive long-term investment.

Investors can capitalize on Alibaba’s growth at an attractive valuation point as it navigates e-commerce competition and geopolitical challenges. The Zacks Top 10 Stocks for 2025 offer potential investment opportunities. With a Zacks Rank #3 (Hold), Alibaba’s strategic focus and growth prospects make it a compelling option for patient investors looking to enter China’s digital economy transformation.



Read more at Nasdaq: Here’s Why 2025 Could Be the Year of Redemption for Alibaba Stock