GENEVA - Alibaba (NYSE:BABA).com, the global B2B e-commerce platform and part of Alibaba International Digital Commerce Group, highlighted its ongoing support for Micro-, Small, and Medium-Sized Enterprises (MSMEs) on MSME Day. The company is intensifying its efforts to empower MSMEs with artificial intelligence (AI) tools, with around 30,000 businesses on its platform already adopting these technologies.
MSME Day, established by the United Nations seven years ago, acknowledges the significant contribution of MSMEs to the global economy and their role in achieving the UN Sustainable Development Goals. Kuo Zhang, President of Alibaba.com, emphasized the importance of inclusive access to AI for MSMEs, particularly in underdeveloped countries, during the World Trade Organization's Global Review of Aid for Trade and a United Nations International Trade Centre session.
A recent survey of MSMEs using Alibaba.com revealed that 25%-30% of them utilize AI daily. The adoption of AI tools on the platform has led to a 37% increase in product exposure for these businesses. Zhang announced the company's aim to expand its global supplier base to 100,000 in the next three years, focusing on building a supply chain centered around MSMEs and AI.
Alibaba.com's digital supply chain clusters allow MSMEs to connect with specialized suppliers in various regions, such as Northeast Asia for skin care and home furniture, Southeast Asia for condiments and furniture, West Asia, and Europe for textiles and machinery. The platform is also increasing its support for suppliers in developing countries, aiming to onboard 100 MSMEs from Africa and holding numerous events and seminars in these regions.
The platform, which connects over 48 million buyers with more than 200,000 suppliers worldwide, continues to prioritize MSMEs by innovating and simplifying the processes of global sourcing and selling.
The survey, conducted in May 2024, included 500 businesses of varying sizes on Alibaba.com. These findings underscore the increasing integration of AI in daily business operations and the platform's strategic focus on enhancing global trade opportunities for MSMEs.
The information for this report is based on a press release statement from Alibaba.com.
In other recent news, Alibaba Group Holding Limited recorded robust growth in its core businesses and artificial intelligence revenue during the March quarter and full fiscal year 2024. Notably, there were significant increases in gross merchandise volume and revenue in key segments like Taobao and Tmall.
The company also successfully raised $5 billion through a private offering of convertible senior notes.
Analysts at BofA Securities responded to these developments by increasing Alibaba's stock price target to $103 from $99, maintaining a Buy rating. However, Mizuho revised the stock price target for Alibaba to $92.00 from $95.00, while still upholding its Buy rating.
Loop Capital has also adjusted its outlook on Alibaba shares, citing optimism for a positive shift in valuation. The firm has increased the company's price target to $115 up from $111, while reaffirming a Buy rating.
Other recent developments include the launch of Alibaba Guaranteed, a service aimed at streamlining global sourcing and supply chain processes for small and medium-sized enterprises. These are some of the recent developments surrounding Alibaba, providing investors with a snapshot of the company's current business landscape.
InvestingPro Insights
As Alibaba.com continues to champion the growth of MSMEs through AI integration and global trade facilitation, the company's financial health remains a critical factor for investors and stakeholders. According to InvestingPro data, Alibaba boasts a robust market capitalization of $179.36 billion, underlining its significant presence in the e-commerce sector. The company's P/E ratio, which stands at 17.35, reflects investor confidence in its earnings potential, with an even more attractive adjusted P/E ratio of 11.79 for the last twelve months as of Q4 2024, suggesting a potentially undervalued stock.
Furthermore, Alibaba has demonstrated solid fundamentals with a revenue growth of 8.34% in the last twelve months as of Q4 2024, coupled with a healthy gross profit margin of 37.7%. This revenue growth aligns with the company's strategic initiatives to expand its global supplier base and enhance its digital supply chain clusters. With a fair value estimation by InvestingPro at $118.9, significantly higher than the previous close price of $74.17, there appears to be an upside potential for the company's stock value.
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