Alibaba Group Holding Ltd (BABA)

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Forget Amazon: Alibaba Is The Horse To Bet On In This Race

By: Seeking Alpha | March 1, 2018

• Alibaba is often referred to as the Amazon of China. This is inaccurate.

• Alibaba's "Alibaba Economy" vision makes it much more than an e-commerce powerhouse -- which also happens to be true.

• Jack Ma is building a dynamic technology firm whose growth could be just getting started.

Yet despite its long history of blistering success, Alibaba (BABA) is not only a threat to Amazon (AMZN), but it has built a growth engine that is superior. True there are differences between their business models. And direct apples-to-apples comparison is tricky. But Alibaba's low-inventory model, compared with the capital-intensity of Bezos & Co., make it hard to ignore. It's also why BABA's outperformance of AMZN's meteoric share price performance isn't surprising:



Source: Yahoo Finance.

Amazon's future may appear bright, but it may be eclipsed by Alibaba's awe-inspiring business model. The following factors, in my opinion, are going to be the critical differentiators for Jack Ma's e-commerce giant in the years ahead.

Going beyond e-commerce

Alibaba, like its rival Amazon, is evolving into a technology company that happens to facilitate e-commerce. It has moved to become the sole technology infrastructure provider to small businesses, especially in China. Alibaba is expanding its capabilities across the commerce technology spectrum. From its sales platforms to payments and even logistics, Alibaba 'does it all'. Planting the seeds to become one of the global tech giants of the 21st century.

On the consumer side, Alibaba possesses a vast data pool to understand the needs of its customers better. Connecting with them on multiple touch points. BABA has also managed to stay ahead of the curve in mobile, reaching out via video sites, social media, location app, browser, media and more.

https://seekingalpha.com/article/4152314-forget-amazon-alibaba-horse-bet-race

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