2024-05-29 21:17:32 ET
Summary
- Alibaba reported 45% YoY growth in the International Digital Commerce segment revenue compared to 7% consolidated revenue growth.
- Over the last two years, the international revenue has doubled from RMB 14 billion in the March-ending quarter of 2022 to RMB 27.5 billion in the recent quarter.
- This has also doubled the revenue share of international commerce from 6.5% two years ago to 13% in the recent quarter.
- At the current growth rate, Alibaba’s international commerce revenue share could increase to 25% by the end of 2025.
- A higher revenue share of international business could reduce a large part of the bearish sentiment due to geopolitical tensions and give the company a better growth runway.
Alibaba ( BABA ) (BABAF) stock has failed to show a strong bullish momentum over the last few quarters. Despite the rock-bottom valuation, the stock has failed to impress Wall Street. The recent quarterly earnings show a possible silver lining which can turn the sentiment toward the stock. In the recent quarter, Alibaba reported 45% YoY revenue growth in its International Digital Commerce Group. The revenue increased from RMB 18.9 billion in the year-ago quarter to RMB 27.5 billion in the recent quarter. On the other hand, consolidated revenue growth was only 7%. In the previous article , the potential improvement in cloud business was mentioned. Alibaba has reported 45% YoY EBITA growth in the cloud segment, which increases the annualized EBITA to $800 million....
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Alibaba: Geographic Diversification Can Potentially Reduce Downside Risks