Alibaba Group, the Chinese tech giant, has decided to step up its expansion abroad, while growth in the domestic market remains slow. Alibaba's latest financial results revealed dramatic growth in international e-commerce, which now represents a key part of its portfolio.

Alibaba's international e-commerce business, comprising platforms such as AliExpress or Lazada, reported in the December quarter sales growth of 44% compared to the previous year. This performance surpassed domestic retailers Taobao and Tmall Group, whose sales grew by only 2%.

According to Alibaba's CEO, Eddie Wu, the company will focus on investing in improving user experience while continuing to develop products public cloud and international business.

Alibaba

BABA

$76.53 $1.13 +1.50%

Target Price

173.02 (+126.08% Upside)

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This strategy comes at a time when Alibaba is facing intense competition both domestically and regionally. Competitors are putting pressure on Alibaba, which seeks new growth opportunities in different parts of the world.

In response to these challenges, it has implemented Alibaba$BABA+1.5% made several changes to its leadership, including the decision to split into six business units to better prepare for competition. These moves are intended to strengthen thecompany' s competitiveness and enable it to respond more quickly to market dynamics.

"Alibaba's latest management changes are linked to the company's previous split. This strategy helps Alibaba better respond to changes in regulations in China that have long affected the technology firm."

Yinglan Tan, founding and managing partner at Insignia Ventures Partners

Alibaba

BABA

$76.53 $1.13 +1.50%

Fair Price: $03.47

Iwjhme: 11.04%

Undervalued

Overvalued

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Leadership changes, investments in Expansion abroad and strategic adjustments to the company's structure show that Alibaba is actively trying to adapt to the new environment and maintain competitive advantage in e-commerce and cloud services.

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Source.