Omnichannel Profits: How Alibaba's AI, naoo's communities, and PayPal's embedded finance are filling your coffers

Alibaba – What is the current situation and what are the plans for the future?

Alibaba divides its business into distinct segments, with traditional online retail remaining the dominant segment. In the first quarter of 2025, e-commerce accounted for approximately 43% of total revenue, with platforms such as Taobao and Tmall, corresponding to around CNY 101 billion (roughly EUR 12 billion). Local services, including delivery services such as Ele.me, account for just under 7%, or approximately CYN 16 billion. The ratio is approximately 1 to 6 in favor of e-commerce. International trade contributes 14%, while cloud and AI together account for 13%. Core commerce remains the mainstay, but the new areas are gaining momentum.

The Company is investing massive amounts of money in cloud and artificial intelligence, with plans to allocate USD 53 billion over the next few years. The cloud business is growing at triple digits in AI-related revenue for seven consecutive quarters, positioning Alibaba as a strong player in China. Models such as Qwen are widely used in companies ranging from e-commerce to medicine, creating new revenue streams through cross-selling. Just yesterday, Qwen3-Coder, an advanced programming model, was unveiled. Despite solid quarterly figures with a 7% increase in revenue to CYN 236 billion, the potential here remains enormous, especially as costs in China are lower than in the West. This could give Alibaba a long-term advantage.

Geopolitical tensions between the US and China are casting a shadow, with trade barriers and regulations that could slow growth. Nevertheless, Alibaba is demonstrating strength in diversification, for example by expanding international platforms and focusing on robotics and healthcare. The valuation appears low compared to US tech giants, which offers opportunities if risks subside. Investors should remain vigilant about macroeconomic uncertainties in China, but the combination of a solid core and innovative fields makes it an exciting story. The stock is currently trading at USD 123.24.

naoo – Swiss tech company shakes up social media

naoo AG, a young tech company with a fresh approach to the social media market, is based in Zug. Its AI-driven platform combines classic networking functions with a reward system known as "naoo points." Users collect these points through activities such as posting, completing surveys, or sharing data. In return, they receive vouchers or cash. The goal is to promote engagement and use data to create value. The key difference from community giants like Instagram? All users receive rewards, not just top influencers. The model also results in strong local roots. Local businesses can advertise in a targeted manner with personalized offers and location targeting, which increases user loyalty through gamification, for example.

A significant boost was achieved with the acquisition of Kingfluencers, Switzerland's largest influencer agency, which brought an established customer base, brand relationships, and expertise in campaign management. All these factors create important synergies for marketing and user growth. At the same time, naoo is driving technical development forward. A completely rebuilt, highly scalable infrastructure enables lightning-fast loading times and features such as the AI-based feed algorithm "naoo Sense 2". This delivers hyper-relevant, context-based content in real-time, designed to improve the user experience significantly. The foundation for international expansion, starting with Germany, has been laid.

As is typical for startups in this phase, the 2024 balance sheet still showed startup losses. With revenue of CHF 0.43 million, EBITDA was CHF -1.11 million. Financing has primarily come from the founder and capital increases. Kingfluencers is the game changer. Its integration is progressing successfully, cost savings have already been realized, and a significant jump in revenue to around CHF 10 million is expected for 2025. The GBC study forecasts revenues of CHF 18.85 million for 2026, which are expected to continue to rise significantly in the following years. In the medium term, advertising revenues are expected to become the main source of income, driven by growing user numbers, economies of scale, and the synergy potential within the ecosystem of the platform and agency. The analysts at GBC Research have issued a "Buy" recommendation with a target price of EUR 28.48. This means that the share, which is currently trading at EUR 9.50, offers considerable potential.

PayPal – Fundamentals are right, now growth must follow

PayPal is currently presenting a mixed picture. Earnings per share regularly exceed expectations, while revenue growth remains relatively subdued. Nevertheless, the Company's outlook is stable. Estimates for the coming years indicate a healthy increase in earnings per share, with a rate of just under 10% appearing realistic for 2025. In terms of valuation, PayPal appears moderate, especially considering its strong cash flow generation. This is the key. Actual earnings significantly exceed reported balance sheet profits thanks to the capital-light business model.

Management is setting clear priorities. Instead of just chasing new users, the focus is now on better monetization of the existing customer base, especially small and medium-sized enterprises. New partnerships, for example in the crypto sector with stablecoins or in the sports and leisure market, are expected to provide additional growth impetus. Aggressive share buybacks are a major plus for shareholders. These reduce the number of outstanding shares, thereby increasing earnings per share. This drives up the share's value in the long term.

But there is also headwind. Competition from Apple Pay, Google Pay, and fintech companies is fierce. Regulatory hurdles exist, and new technologies, such as cryptocurrencies, are constantly changing the landscape. The key question remains whether PayPal can leverage its solid foundation, strong cash flows, high profitability, and broad merchant base to accelerate revenue growth again. For investors looking for a solid cash machine with turnaround potential and who find the current moderate valuation attractive, PayPal remains an exciting prospect. However, patience is required. A share currently costs USD 76.00.

The digital omnichannel revolution offers explosive growth levers. Alibaba is betting on scalable future areas beyond its dominant e-commerce core with AI and cloud investments worth billions. naoo is disrupting social media with its AI-driven community system and the acquisition of Kingfluencers, which is expected to multiply revenue in 2025 and pave the way to profitability. PayPal, on the other hand, is struggling to generate revenue momentum in a highly competitive environment despite robust cash flows and aggressive share buybacks. Those who leverage synergies from AI, communities, and embedded finance will dominate.