Alibaba's Taobao Overhaul Boosts Growth: Analyst Expects 6% Quarterly Revenue Spike

Zinger Key Points

Alibaba revamped the Taobao webpage earlier this year in its most significant update in seven years to improve the shopping experience .
Bank of America has raised Alibaba's price target from $103 to $106 and reiterated a Buy rating on the stock.
Discover Fast-Growing Stocks Every Month

Bank of America is bullish on Alibaba Group Holding Limited BABA and expects a 6% spike in year-over-year revenue when the Chinese e-commerce company reports first-quarter earnings Thursday.

The expected a 6% increase in revenue to 248 billion yuan is in line with analyst consensus.

Analyst Joyce Ju said Alibaba’s customer management revenue in the Chinese market is expected to rise 2.3% to 81.5 billion yuan ($114 billion). Gross merchandise value is forecasted to rise by a single-digit percentage after Alibaba overhauled its Taobao e-commerce platform in an initiative carried out by Taobao and Tmall, Alibaba’s domestic e-commerce unit, the analyst said.

“We believe TT managed to slightly outgrow the industry as physical online goods sales reported by NBS was only 6.4% in 2Q24,” she wrote in a note.

Ju reiterated an Outperform rating on Alibaba and raised the price target from $103 to $106.

Alibaba revamped its webpage earlier this year in its most significant update in seven years to improve the shopping experience ahead of China's major 618 shopping festival in late May.

The upgrade focused on streamlining the layout and simplifying the search and buying process for users and merchants.

Alibaba’s full-year revenue is expected to grow to 125 billion yuan by 2025, according to BofA.

BABA Price Action: Shares of Alibaba were down 1.8% to $79.60 at the time of publication Wednesday.

This decline was mirrored across several related ETFs: