Alibaba's Lazada Hits Monthly Profit, Eyes Expansion in Southeast Asia: Report

Author: Anusuya Lahiri | August 14, 2024 09:23am

Alibaba Group Holding (NYSE:BABA) has announced that its Southeast Asian e-commerce platform, Lazada, achieved a significant milestone by posting a monthly profit for the first time in July 2024.

During a town hall meeting, Lazada’s CEO, James Dong, shared that the company recorded positive EBITDA, marking a key achievement in its business strategy, SCMP reports.

The company has been leveraging artificial intelligence-enabled operations, improved online marketing, user incentives, and optimized logistics to drive growth.

Also Read: Singapore’s Sea Reports Mixed Bag Of Q2 Earnings, Expects Shopee To Become Adjusted EBITDA Positive From Q3

Lazada, operating in Singapore, Indonesia, Malaysia, Thailand, Vietnam, and the Philippines, has focused on long-term growth and sustainability.

Despite this achievement, Lazada continues to face intense competition in Southeast Asia. Sea Limited’s (NYSE:SE) Shopee remains the leading e-commerce platform in the region, with a 48% market share.

Alibaba has injected approximately $7.4 billion into Lazada. Looking ahead, Lazada aims to reach an annual gross merchandise value (GMV) of $100 billion by 2030

Alibaba’s international commerce retail business revenue for the fourth quarter grew by 45% year over year to $3.80 billion.

Alibaba Group Holding stock lost over 13% in the last 12 months as it battles intense domestic e-commerce rivalry in a weak domestic economy.

Investors can gain exposure to Alibaba Group Holding through SPDR NYSE Technology ETF (NYSE:XNTK) and Invesco Nasdaq Internet ETF (NASDAQ:PNQI).

Price Action: BABA shares traded lower by 0.35% at $80.80 premarket at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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Posted In: BABA PNQI SE XNTK