Alibaba reportedly plans to restructure chip unit T-Head into a partly employee-owned entity ahead of a 2027 Hong Kong IPO that could raise USD 2 billion to USD 3 billion.
Alibaba is able to maintain or increase its gross merchandise volume share in China's e-commerce space, demonstrating its ability to execute its turnaround strategy.
Bears
Alibaba's GMV share in China decreases faster than we expect as competitors such as Douyin successfully enter the search-based e-commerce business.
Alibaba is the world’s largest online and mobile commerce company as measured by gross merchandise volume. It operates China’s online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer). The China retail e-commerce platform is the most valuable cash flow-generating business at Alibaba. Additional revenue sources include China wholesale e-commerce, international retail and wholesale e-commerce, local consumer services, travel services, cloud computing, digital media and entertainment, Cainiao logistics services, and other businesses.