It appears that Jack Ma has bested Jeff Bezos, at least in China.
Jeff Bezos’ Amazon (NSDQ: AMZN) is abandoning China, a potentially huge win for China-based rival Alibaba Group (NYSE: BABA), founded by Ma.
Amazon announced in April that it would formally shut down the Chinese operations of its vast global e-commerce network. The U.S.-based company invested heavily in Amazon.cn, but the site had trouble adapting to the fickle and often enigmatic tastes of Chinese shoppers.
Amazon won’t completely pull the plug on the world’s second-largest economy; Amazon Web Services (AWS) and Kindle e-books will remain in operation there.
E-commerce is increasingly popular in China. However, Alibaba has been nimbler on its home turf than Seattle-based Amazon.
By leveraging its local supplier networks, Alibaba has enhanced customer service and reaped economic efficiencies. Alibaba also has demonstrated a deeper understanding of Chinese consumers, by tailoring its online offerings and shopping experience to their moods and preferences.
Amazon was only able to capture 0.6% of Chinese business-to-consumer online retail, whereas Alibaba commands the largest share at 61.5%. Bezos knows when to bet big; he also knows when to fold ’em.
Does Amazon’s surrender in China make Alibaba a hot stock to buy now? Or will BABA finally run out of steam after years of torrid growth? Let’s find out.
What's In This Guide
- What Is Alibaba Group?
- How Has Alibaba Group Stock Performed?
- Will Alibaba’s Stock Go Up In 2019 (Should You Buy)?
- Will Alibaba’s Stock Go Down In 2019 (Should You Sell)?
- Overall Alibaba Stock Forecast And Prediction For 2019
What Is Alibaba Group?
Imagine if you could combine, into a single company, the capabilities of Amazon, Twitter (NSDQ: TWTR), eBay (NSDQ: EBAY), Netflix (NSDQ: NFLX), PayPal(NSDQ: PYPL), and Alphabet (NSDQ: GOOGL).
Well, such a company already exists. It’s called Alibaba Group.
Alibaba’s better-known counterparts in the United States hog the media spotlight, but with a market cap of $485.7 billion, the China-based online commerce company is a widely diversified global juggernaut.
Alibaba is the biggest e-commerce firm in China, with hundreds of millions of consumer and business customers.
