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Alibaba (BABA) Unveils New B2B Products for Small Businesses
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Alibaba (BABA - Free Report) has deepened its focus on small business enterprises by introducing a suite of advanced business-to-business (B2B) sourcing tools.
The new products and features include a smart assistant tool that guides businesses in staying up-to-date on trends, tracking orders and exploring new opportunities, as well as smart enhancements to request for quotation, which enables a seamless connection between business owners and qualified suppliers by supporting predictive sentence completion and image generation.
The new suite includes Alibaba.com’s logistics marketplace, thus delivering better supply chain management by offering 24/7 live customer service, which helps in tracking B2B shipments and timelier product delivery.
The company introduced an upgraded image search feature that comes with additional image generation capabilities in order to aid in the streamlining of complex sourcing requirements. The feature allows buyers to search for products by image and text simultaneously.
Alibaba unveiled a real-time translation feature for live video chats with suppliers, available in 17 languages.
We note that these new products and features are expected to drive BABA’s momentum among small businesses, as they are designed to help entrepreneurs boost sourcing and supply chain operations.
The latest move is expected to strengthen Alibaba’s global B2B business, which, in turn, will likely aid the performance of Alibaba’s International Digital Commerce Group segment.
The segment generated RMB 22.1 billion ($3.05 billion) in revenues in first-quarter fiscal 2024. The figure accounted for 9.4% of total revenues and grew 41% from the year-ago fiscal quarter’s reported figure owing to strength in international commerce retail business.
The business reported revenues of RMB 17.14 billion ($2.4 billion) in the same quarter, up 60% year over year.
Our model estimate for fiscal 2024 Alibaba International Digital Commerce Group revenues are projected at RMB 96.7 billion, indicating growth of 9.3% from fiscal 2023.
In international commerce, retail revenues are pegged at RMB 76.2 billion, reflecting growth of 79% year over year.
We note that Alibaba’s strengthening international business, expanding global footprints and growing momentum among small businesses will continue to aid its overall financial performance, which, in turn, will likely instill investor optimism in the stock.
BABA has gained 2.1% in the year-to-date period.
Zacks Rank & Key Picks
Currently, Alibaba sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
Alibaba (BABA) Unveils New B2B Products for Small Businesses
Alibaba (BABA - Free Report) has deepened its focus on small business enterprises by introducing a suite of advanced business-to-business (B2B) sourcing tools.
The new products and features include a smart assistant tool that guides businesses in staying up-to-date on trends, tracking orders and exploring new opportunities, as well as smart enhancements to request for quotation, which enables a seamless connection between business owners and qualified suppliers by supporting predictive sentence completion and image generation.
The new suite includes Alibaba.com’s logistics marketplace, thus delivering better supply chain management by offering 24/7 live customer service, which helps in tracking B2B shipments and timelier product delivery.
The company introduced an upgraded image search feature that comes with additional image generation capabilities in order to aid in the streamlining of complex sourcing requirements. The feature allows buyers to search for products by image and text simultaneously.
Alibaba unveiled a real-time translation feature for live video chats with suppliers, available in 17 languages.
We note that these new products and features are expected to drive BABA’s momentum among small businesses, as they are designed to help entrepreneurs boost sourcing and supply chain operations.
Alibaba Group Holding Limited Price and Consensus
Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote
Rationale Behind the Move
The latest move is expected to strengthen Alibaba’s global B2B business, which, in turn, will likely aid the performance of Alibaba’s International Digital Commerce Group segment.
The segment generated RMB 22.1 billion ($3.05 billion) in revenues in first-quarter fiscal 2024. The figure accounted for 9.4% of total revenues and grew 41% from the year-ago fiscal quarter’s reported figure owing to strength in international commerce retail business.
The business reported revenues of RMB 17.14 billion ($2.4 billion) in the same quarter, up 60% year over year.
Our model estimate for fiscal 2024 Alibaba International Digital Commerce Group revenues are projected at RMB 96.7 billion, indicating growth of 9.3% from fiscal 2023.
In international commerce, retail revenues are pegged at RMB 76.2 billion, reflecting growth of 79% year over year.
We note that Alibaba’s strengthening international business, expanding global footprints and growing momentum among small businesses will continue to aid its overall financial performance, which, in turn, will likely instill investor optimism in the stock.
BABA has gained 2.1% in the year-to-date period.
Zacks Rank & Key Picks
Currently, Alibaba sports a Zacks Rank #1 (Strong Buy).
Investors interested in the broader retail-wholesale sector can consider some other top-ranked stocks like BJ’s Restaurants (BJRI - Free Report) , Domino’s Pizza (DPZ - Free Report) and Darden Restaurants (DRI - Free Report) . While BJRI currently sports a Zacks Rank #1, DPZ and DRI each carry a Zacks Rank #2 (buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Restaurants has gained 11.9% in the year-to-date period. The long-term earnings growth rate for BJRI is currently estimated at 15%.
Domino’s Pizza shares have gained 12.1% in the year-to-date period. DPZ’s long-term earnings growth rate is currently projected at 12.97%.
Darden Restaurants has gained 12.2% in the year-to-date period. The long-term earnings growth rate for DRI is currently anticipated at 10.4%.