Why Alibaba Stock Is Trading Higher Tuesday?

Alibaba Group Holding Limited BABA stock is trading higher amid reports indicating its grocery subsidiary Freshippo has undergone restructuring and launched an open-source Large Vision Language Model (LVLM) named Qwen-VL. 

Freshippo has consolidated its in-house brand business team, global sourcing team, and category procurement team, with a strong focus on leveraging its in-house brands, TechNode cites a local journal.

Freshippo proposed to gradually phase out the traditional critical account (KA) model for a direct procurement strategy. 

Product costs from other distribution channels will be 20 - 30 basis points lower than in the KA business model, as per Freshippo’s CEO Hou Yi. 

To build its differentiation strategy, Freshippo will establish operational systems focused on local market forecasting, planning, and pricing. 

Since late July, major Chinese new retail market players like Freshippo, Sam’s Club, Meituan, and Rt-Mart slashed the prices of their fresh and bakery products.

Meanwhile, Alibaba Cloud LVLM is based on Alibaba Cloud’s 7 billion parameter foundational language model Qwen-7B. 

Qwen-VL launched new features, including visual location recognition, image-text comprehension, image-text recognition, description, and question answering.

Qwen-VL and its visual AI assistant, Qwen-VL-Chat, are available for free and commercial use.

Price Action: BABA shares traded higher by 1.58% at $93.70 premarket on the last check Tuesday.