Alibaba’s BABA international commerce business is narrowing losses, positioning the segment as a stronger long-term growth driver. Alibaba International Digital Commerce Group (AIDC) — which includes AliExpress, Alibaba.com, Lazada and Trendyol — significantly reduced its adjusted EBITA loss in fiscal 2026 as management improved logistics efficiency, optimized operations and enhanced unit economics, bringing the business closer to break-even.
The Brand+ initiative is attracting higher-quality brands and consumers, supporting stronger monetization, while AI-powered tools such as Accio and Accio Work are helping merchants automate sourcing, product listings and business operations, improving productivity and customer engagement. Alibaba.com’s global B2B marketplace, spanning buyers in more than 190 countries and generating revenues from memberships, value-added services, logistics and digital marketing, provides a diversified foundation for future international expansion. Alibaba has also continued strengthening its cross-border commerce ecosystem by expanding AI capabilities for merchants and broadening its Trade Assurance program into additional markets, reinforcing its strategy to accelerate profitable international growth.
However, investors should monitor regulatory risks, particularly in Europe, where increased compliance requirements and penalties for marketplace operators could raise operating costs and slow the path to sustained profitability for Alibaba's international commerce business.
According to the Zacks Consensus Estimate, earnings are projected to grow 15.28% in fiscal 2027, indicating that continued improvement in international commerce could become an increasingly important contributor to Alibaba's long-term profitability and sustainable growth.
How Rivals Stack Up Against BABA
AmazonAMZN challenges Alibaba through its vast international marketplace, fulfillment network and Prime ecosystem. Amazon benefits from seller-friendly policies, including lower fees in Europe and Brazil, while faster delivery and logistics strengthen global reach. The company also expands cross-border opportunities through growing international operations. Amazon's scale, fulfillment efficiency and trusted brand remain key competitive advantages.
Global-e OnlineGLBE competes with Alibaba by enabling brands to sell globally through localized merchant-of-record services. Global-e Online differentiates itself with compliance, duties, taxes, payments and fulfillment capabilities, while Managed Markets and Borderfree expand merchant reach. Global-e Online also benefits from AI-driven automation and growing demand for seamless cross-border commerce, reinforcing its competitive position.
BABA shares have declined 33.5% over the past six months compared with the industry’s fall of 4.2%.
BABA’s Six-Month Price Performance
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 14.78 forward earnings, lower than 21.63 for the industry. BABA has a Value Score of C.
BABA’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 EPS has declined 6.78% to $6.88 over the past 60 days, and those for fiscal 2028 have decreased 9.06% to $9.53. However, the estimate still reflects robust year-over-year growth of 76.86%.
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