Alibaba and Amazon are the two most anticipated stocks in the US stock market. The two companies are similar in many ways. In October 2017, Alibaba's share price also surpassed Amazon. But because the Alibaba has a large investment in the AI - based technology field, such as 2017 Damo homes, as well as the acquisition of ant gold clothing, a large number of acquisitions, and a slowdown in the main business income, it has triggered a downward trend in the share price of the Alibaba. Now the market value of the Alibaba is around, and the market value of the Amazon is on the Amazon. Has reached 770 billion (2018.5.29), Amazon's market value has been 50% higher than Alibaba.
But is the Alibaba really thrown away by Amazon?
From the data of 2014-17 years alone, Alibaba's revenue grew by 220% and Amazon's growth by 100%. At the same time, Alibaba's share price increased by only 70%, but Amazon's share price rose by more than 400%.
Where is the value of Amazon so high?
In the field of e-commerce, Amazon early entered the developed countries in Europe and America, established a perfect logistics system; in the field of cloud services, Amazon has become big and strong, a large amount of profits come from AWS business, and Ali cloud is still in a state of loss as a later person.
Citron research: compared with Amazon, Alibaba is undervalued.
Citron research points out that compared with Amazon, the value of Alibaba, which also focuses on e-commerce, is underestimated by the market. The Alibaba's business model is different from Amazon, and in China it is much better than Amazon in the United States, with a higher market share and an ecosystem of its own. In the face of Alibaba with higher revenue growth than Amazon, Alibaba's share price growth is not as good as Amazon's.
The advantages of the Alibaba
The Alibaba is entering the field of logistics, cloud computing, online video and entity retail through a large number of acquisitions and investments, which will be effective in the short term. In addition, the market share of Alibaba in China is much higher than the share of Amazon's market share in the United States, and the successful experience in developing countries will help Alibaba to enter the international market in the third world, and Amazon has failed to achieve significant success in these markets.