Alibaba (BABA) Boosts Clientele With Digital Solutions' Strength
Alibaba Group Holding BABA is consistently gaining momentum among customers on the back of robust digital offerings.
The company recently collaborated with a major China-based automotive company, Geely Holding. Per the terms of this alliance, Alibaba’s digital capabilities will be integrated into the carmaker’s smart electric transport.
On the back of the partnership, both China-based companies are focusing on development in cloud computing, industrial internet, automotive intelligence, smart travel, digital marketing and sustainable development.
The recent move naturally added strength to Alibaba’s customer base. This is expected to drive its top line in the upcoming period.
Alibaba Group Holding Limited Price and Consensus
Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote
More Into the News
BABA’s cloud computing business and Geely Research Institute will team up to develop a smart computing center and improve intelligent car services and driver-vehicle interaction technologies.
The cloud division will also partner with Geely’s digital technology arm, GYMD Digital Technology, for building a digital automotive factory.
Alibaba Cloud, along with the digital map and navigation service provider, Amap, and internet-connected vehicle operating system provider, Banma Network Technology, will provide Geely smart cockpit, smart mobility and vehicle ecology services.
On the back of Alibaba’s offerings, Geely aims to gain momentum among customers and increase sales of smart vehicles.
Efforts to Boost Prospects
With the recent collaboration with Geely, Alibaba is positioning itself well to capitalize the growing prospects in the automotive market in China.
Per a MMR report, the automotive market in China is likely to reach $3.24 trillion by 2029, witnessing a CAGR of 6.5% during the 2022-2029 period.
Strong footprint in the automotive space will help Alibaba win the confidence of the investors in the near and long terms.
Shares of Alibaba have been down 11.1% in the past year compared with the Retail-Wholesale sector’s decline of 19.1%.
Zacks Rank & Other Stocks to Consider
Currently, Alibaba carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Retail-Wholesale sector are American Eagle Outfitters AEO, Arhaus ARHS and Bath & Body Works BBWI, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Eagle has lost 35.1% in the past year. The long-term earnings growth rate for AEO is currently projected at 11.6%.
Arhaus has gained 21% in the past year. ARHS’ long-term earnings growth rate is currently projected at 16.1%.
Bath & Body Works has moved 16.4% south in the past year. The long-term earnings growth rate for BBWI is currently projected at 14.5%.
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