Alibaba Group Holding 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.
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 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
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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 XNTK and Invesco Nasdaq Internet ETF 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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