Alibaba Turns Its Focus To Attract Established Players on Amazon to Its E-Commerce Platform AliExpress

Alibaba Group Holding Limited (NYSE:BABA) is one of the Top 10 Long-Term Stocks to Invest In According to David Tepper. On September 22, Bloomberg reported that Alibaba Group Holding Limited (NYSE:BABA) is trying to attract established players on Amazon.com to its global e-commerce platform AliExpress.

Alibaba is focusing on expanding its footprint on Amazon’s home turf. AliExpress is trying to add more leading brands to its platform by offering lower shipping fees and taking lower cuts of sales compared to Amazon. According to Bloomberg, AliExpress is planning a new initiative to attract more customers and boost sales in major markets, including Europe and Latin America. Alibaba will also try to get hold of brands present on its domestic e-commerce platform T-Mall. The amount of investment being spent on this initiative is undisclosed.

AliExpress already hosts some of the leading brands from China, including Xiaomi and Labubu-branded plush toy maker Pop Market International Group. Although Alibaba mentioned earlier this year that its core focus will remain on developing AI now, e-commerce remains its main source of income.

On September 29, Citi analyst Alicia Yap raised the price target on BABA following its annual event, the Apsara Conference. Yap sees higher cloud revenue and capex assumptions driven by Alibaba’s goal to increase its data center capacity due to rising AI demand. The analyst says that Alibaba is one of the “5-6 global super cloud platforms with full-stack AI services.”

Alibaba Group Holding Limited (NYSE:BABA) offers technology infrastructure and market platforms. The company operates through seven segments, including China Commerce, International Commerce, Local Consumer Services, Cloud, Cainiao, Digital Media and Entertainment, and Innovation Initiatives and Others.

While we acknowledge the potential of BABA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.