In major news on Hong Kong stocks, Alibaba Group Holding Limited (HK:9988) is targeting a 20% growth in its B2B (business-to-business) e-commerce platform in 2024. Zhang Kuo, President of Alibaba.com, expressed aspirations for achieving a gross merchandise value (GMV) of $60 billion in 2024, a notable increase from the previous year’s $50 billion, while defying competitive pressures.
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Alibaba’s Hong Kong-listed shares traded flat on Friday. Year-to-date, Alibaba stock has gained 3.2%.
Alibaba is a Chinese technology company widely known for its online marketplace.
Is Alibaba Set for a Rebound in 2024?
Kuo, while interacting with the South China Morning Post, stated that the pace of growth in the B2B marketplace has decelerated following a remarkable sevenfold increase in GMV over the past five years. However, he highlighted the need for new initiatives and changes to enhance its business model.
Yesterday, Alibaba unveiled its latest tool, Alibaba Guaranteed. This service ensures products are available at set prices, including shipping fees, and guarantees specified delivery times. Moreover, the company will continue to build upon its AI capabilities to stimulate growth on its primary B2B platform.
Speaking of the rivalry in the market, Kuo dismissed the competitive pressures from Temu, owned by PDD Holdings (NASDAQ:PDD) or TikTok. In 2023, TikTok, owned by ByteDance also ventured into the e-commerce business. He emphasized that while these competitors are making effective strides in international markets, Alibaba remains highly committed to its domestic ecosystem.
Is Alibaba Stock a Buy?
On TipRanks, 9988 stock has received a Moderate Buy consensus rating from analysts based on four Buy and two Hold recommendations. The Alibaba share price target is HK$93.62, which implies a growth rate of 21.43% on the current trading price.
