Alibaba Group Holdings (BABA) 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.
At the town hall meeting, Lazada CEO James Dong said the company recorded positive EBITDA, demonstrating a significant achievement in its business strategy, SCMP reported.
The company has been using artificial intelligence-enabled operations, improved online marketing, user incentives and logistics optimization to drive growth.
Related article: Singapore's Sea reports mixed second-quarter earnings, Shopee sees positive adjusted EBITDA from third quarter
With operations in Singapore, Indonesia, Malaysia, Thailand, Vietnam and the Philippines, Lazada is focused on long-term growth and sustainability.
Despite this achievement, Lazada continues to face stiff competition in Southeast Asia, where Sea Limited's SE Shopee remains the leading e-commerce platform in the region with a 48% market share.
Alibaba has injected about $7.4 billion into Lazada, which aims to hit $100 billion in annual gross merchandise volume (GMV) by 2030.
Alibaba's fourth-quarter global retail revenue rose 45% from the same period last year to $3.8 billion.
Alibaba Group Holdings Ltd.'s shares have fallen more than 13 percent over the past 12 months as the company struggles with fierce domestic e-commerce competition amid a sluggish domestic economy.
Investors can gain exposure to Alibaba Group Holding through the SPDR NYSE Technology ETF XNTK and the Invesco Nasdaq Internet ETF PNQI.
Price Activity: As of last check on Wednesday, BABA shares were trading at $80.80, down 0.35% in pre-market trading.
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