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Alibaba vs Amazon : Which Stock To Buy?

Alibaba vs Amazon : Which Stock To Buy? 


Is it possible Alibaba beat Amazon Using China Growth Strategy?

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Blibaba nicknamed "The Amazon of the East," one cannot help drawing comparisons between Amazon. Alibaba Group Holding Ltd is No.1 on its growth in China to compete with Amazon.com, Inc. in the international competition now. Alibaba which has been often compared with Amazon.com as its prime rival from the U.S., and other e-commerce company like eBay comes as the company is expected to have recorded for its the Singles Day shopping event(Nov. 11th). They are hungry in the sense that they are constantly trying to venture and establish into new markets. Amazon($260.19B) has a market cap that is about $87 billion higher than Alibaba's($173.55B). Interest thing is that Alibaba built its business solely in China. It controls 80% of the e-commerce market share in China. But Amazon controls approximately 30% market share in the U.S. only. When Alibaba had its IPO, its began trading on the New York Stock Exchange on Sep. 19th, 2014 with a bang, soaring 38 percent to close at $93.89 per share. However, Alibaba stock is currently($68.82, March 1st, 2016) trading at ~27% below its IPO debut.
  - Stock Price compare:
                    Sept.19th 2014     March 1st 2016     Comparison Ratio
    Alibaba              $93.89           $68.82                - 26.7%       
    Amazon          $1,032.35          $385.82                - 62.6%
What about the Amazon?
Amazon continues to dominate new emerging markets like Indian market. Amazon stock has been on decline in the past few months, and this is partly due to growing unease and a lack of profits. Drawing a parallel with Alibaba, Amazon is the No.1 of e-commerce in the Western world with 300M+ registered Amazon customers, $107 billon in sales during 2015, and year-over-year revenue growth of 20% over the past 9 years. Because why it is that Amazon stock is one of the most-loved tech stocks.
Amazon Prime Air presents a unique opportunity to the robotics future. It will allow Amazon to deliver fresh goods quickly and conveniently. And Amazon has eyes set on the growing Asian market. Not Just as India goes through a surge with regard to the economy to another country. In a  move aimed at reducing costs, Amazon launched "Amazon Flex". It is a delivery service in a similar to Uber. Drivers can sign up to pick and deliver goods to Amazon's customers. Amazon is able to crowd source their delivery forces. Amazon has strategically launched the Amazon Echo. Amazon's customers can order products using their voice and play content from Amazon Prime. 
What aboud the Alibaba?
Alibaba is dominance of the Chinese market. China's economy was very fast growing and had high expectations, Alibaba enjoyed this growth. However, China's growth has slowed down. Alibaba still maintains an impressive new ecosystem in the Internet era. Aliexpress is becoming increasingly popular in the Western world due to low prices. AliExpress(AliExpress.com) is designed to help customer outside of China connect and do business with merchants in China with free shipping options. However, it has failed to really become a household name due to the proliferation of counterfeit goods on the site. Westerners typically have disposable income and want the real deal at a relatively lower price. If Alibaba cleans up Aliexpress's seller of counterfeit goods, it is a huge opportunity to increase sales from the Western country.
Alibaba over Amazon.com remains to be seen soon. There are three factors driving the 25% growth year-over-year of e-commerce market in China. These factors are mobile commerce growth, internet penetration, and commerce growth in lower-tier cities. Chinese internet penetration is still 46% which means a lot of room to grow potential. Mobile commerce would grow from the 1.5% of all commerce in the country in 2014. However, lower-tier cities will gather to online marketplace as brick-and-mortar stores cannot adequately support their demands.