Alibaba Invests $281 Million in Convenience Store Conversion
Alibaba Group Holding Ltd. (NYSE: BABA), recognized as one of the most compelling stocks for investors, has recently unveiled an investment of $281 million aimed at transforming local convenience stores throughout China into Taobao-branded outlets.
This announcement was reported on November 2 by the South China Morning Post (SCMP).
Hu Qiugen, general manager of Alibaba’s instant commerce division, articulated that this initiative will leverage the company’s digital ecosystem and technological prowess to revitalize these establishments.
The objective is to afford consumers a “one-stop, 24-hour, and 30-minute delivery” shopping experience. This strategic enhancement is expected to bolster Alibaba’s operations in instant commerce and on-demand delivery.
As competition in China’s instant commerce sector intensifies, the SCMP highlights an anticipated market valuation of approximately 2 trillion yuan (around $280 billion).
This estimation derives from research conducted by the Chinese Academy of International Trade and Economic Cooperation, a division of the Ministry of Commerce.
A November 7 report from Bloomberg sheds further light on the escalating rivalry between Alibaba Group Holding Ltd. (NYSE: BABA) and competitor Meituan.
The report alludes to market participants, including Julia Pan, an analyst at UOB Kay Hian Holdings Ltd. in Shanghai, who are deploying a pair trade strategy—going long on Alibaba while simultaneously shorting Meituan.
Pan notes that “Alibaba’s substantial cash reserves empower it to sustain subsidies and adapt its strategies with agility.” Remarkably, Alibaba’s stock has surged by 90%, whereas Meituan has experienced a 32% decline in share value thus far in 2025.
In contrast, fund manager Xin-Yao Ng of Aberdeen Investments expresses caution regarding Alibaba’s future. He articulates that the company must persist in aggressive investments to safeguard its market foothold, stating:
“Alibaba has been ceding e-commerce market share for an extended period. The decline in e-commerce profitability will eclipse cloud growth for the foreseeable future.”
Alibaba Group Holding Ltd. (NYSE: BABA) stands as a preeminent multinational technology enterprise specializing in e-commerce, retail, Internet, and technological innovations, facilitating interactions among merchants, brands, and consumers both in China and on a global scale.
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Source link: Finviz.com.
