AlibabaAliExpress, the international e-commerce retail division of BABA, has announced several promotional campaigns for shoppers after being named the exclusive global e-commerce partner of UEFA EURO 2024.
The company announced that 1,000 shoppers will have the chance to win UEFA EURO 2024 match tickets.
The promotional campaign also includes a ‘Summer Carnival’ themed Choice Day and Summer Sale, a ‘Shake & Win’ game with limited time prizes and a fun quiz where users can win discounts, match tickets and discount vouchers worth up to $500.
With this launch, Alibaba aims to enhance the user experience for consumers around the world, which will help the company build a solid customer base among international shoppers and sports enthusiasts on the AliExpress platform and expand its business globally.
Alibaba Group Holdings Price and Consensus
Alibaba Group Holding Limited price consensus chart | Alibaba Group Holding Limited stock price
Strength in international e-commerce business drives growth
These promotional campaigns bode well for the company's ongoing efforts to strengthen its international e-commerce business.
In the fourth quarter of fiscal year 2024, Trendyol expanded its cross-border business in the Gulf region. Alibaba's increased investment in expanding product categories and improving customer experience, providing fast and reliable delivery, served as a key catalyst for its expansion in the Gulf region. As a result, Trendyol became one of the most downloaded e-commerce apps in the Gulf region during the quarter.
Alibaba's efforts to offer competitive pricing and fast shipping to AliExpress Choice customers expanded, further strengthening its international commerce business. The company created synergies between AliExpress and Cainiao's cross-border logistics operations and enhanced AliExpress' 5-day and 10-day shipping services. It also increased investments in key markets to improve customer experience, expand its consumer base, and strengthen its market position globally.
These initiatives will continue to support the expansion of Alibaba's international e-commerce footprint, which in turn will strengthen the performance of its Alibaba International Digital Commerce Group (AIDC) division, which is currently the company's key growth driver.
The AIDC segment, which consists of Lazada, AliExpress, Trendyol, Alibaba.com and other companies operating in the international retail and wholesale marketplace, generated revenue of RMB 27.45 billion ($3.8 billion), representing 45% year-on-year growth.
The strengthening of the AIDC division is expected to contribute to Alibaba's overall sales growth in the near term.
The Zacks Consensus Estimate for total revenues in 2025 is $138.63 billion, representing year-over-year growth of 6.2%.
Increasing competition hits Alibaba
However, Alibaba faces stiff competition from industry players such as: Amazon AMZN and Ebay EBAY in the global e-commerce market.
Competitive pressures, rising costs associated with new business ventures, macroeconomic uncertainty and unfavorable currency fluctuations remain key risks for the company. The company's shares have risen 2.7% year-to-date, lagging the Zacks Retail & Wholesale sector's 8.6% gain. The stock has also lagged Amazon's 18% and eBay's 23% growth rates over the same period.
Amazon has led the e-commerce market on the back of strong Prime momentum, powerful distribution capabilities, an expanding fulfillment network, and growing relationships with third-party sellers.
Meanwhile, eBay is making a concerted effort to strengthen its position in the e-commerce space: The company recently launched Luxe Line, a mobile consignment concierge, to provide a convenient selling experience for visitors in Los Angeles and Las Vegas with direct access to expert sellers who list and sell luxury items.
Zacks Rank and Stocks to Consider
Currently, BABA has a Zacks Rank of #3 (Hold).
Top-Rated Stocks in the Retail and Wholesale Sector Coupang CPNG currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Coupang's shares have risen 73.2% since the beginning of the year. CPNG's long-term earnings growth rate is currently forecast to be 33.83%.
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