Alibaba Group Holding Limited (NYSE:BABA) predicts that B2B platform Alibaba.com’s GMV will reach $60 billion in 2024, up 20% from last year’s $50 billion.
Zhang explained that growth had slowed after a seven-fold increase in five years, and stressed the need for a breakthrough in new business models, the South China Morning Post reported in an interview.
Founded in 1999 to connect international buyers with Chinese manufacturers, Alibaba.com now connects Chinese suppliers with global companies, helping to drive $350 billion in exports last year.
Read also: Alibaba’s new AI model claims to outperform OpenAI’s GPT-4 in language skills
With over 200,000 suppliers, 90% of which are in China, the platform is expected to accelerate growth in non-consumer goods such as machinery and construction materials.
Despite competition from apps like PDD Holdings Inc. (NASDAQ:PDD) Temu, Alibaba.com focuses on SME sourcing and local ecosystem. PDD’s cost-performance strategy and Temu marketplace have allowed PDD to surpass Alibaba in market value.
Recently, the company launched “Alibaba Guaranteed,” a service that simplifies B2B procurement with fixed prices and shipping fees. The platform has also introduced AI tools such as chatbots for exporters and product search tools for buyers to enhance its functionality and appeal to users.
In May, Alibaba reported fourth-quarter fiscal 2023 revenue of $30.73 billion, up 7% year over year and beating analyst expectations of $30.4 billion. Adjusted earnings per ADS were $1.40, below analyst expectations of $1.41. Net income fell 86% year over year to $453 million due to net losses from investments in public companies.
Price Action: BABA shares were trading at $79.04 as of last check on Friday, down 1.22%.
Disclaimer: This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
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The article Alibaba Projects $60 Billion GMV in 2024, Plans New Business Model Breakthrough originally appeared on Benzinga.com.
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