Alibaba Group Holding Ltd (NASDAQ:BABA) poised to rule the e-market

1816

By Thomas Copeland on September 20, 2014 Market

Alibaba Group Holding Ltd (NASDAQ:BABA) has taken the competition up a notch and plans to dethrone Amazon.com Inc (NASDAQ:AMZN) for the title of the world’s largest online retailer. Alibaba Group Holding Ltd (NASDAQ:BABA) started trading at $68 a share, having its valuation at 167.6 billion which is almost 17 percent greater than that of Amazon.com, Inc (NASDAQ:AMZN).

The market was ruled by Amazon.com, Inc (NASDAQ:AMZN) in the past for quite some time, but now Alibaba Group Holding Ltd (NASDAQ:BABA) has barged in with record breaking numbers, bent to squeeze Amazon.com Inc (NASDAQ:AMZN) off the top. Investors are now putting their money on Alibaba Group Holding Ltd (NASDAQ:BABA).

Analysts applaud the strength of Alibaba Group Holding Ltd (NASDAQ:BABA) which is relatively new on the market yet has shown the capability to rise to the top. Amazon.com, Inc (NASDAQ:AMZN) has given tough rivalry to big names like Walmart, who have been around for ages. Alibaba Group Holding Ltd (NASDAQ:BABA)’s upward surge has shocked everyone on the market.

Part of this growth owes it to China’s emerging trend in online shopping. They are expected to gain unassailable lead in about two years becoming the largest investor in online marketing. Alibaba Group Holding Ltd (NASDAQ:BABA)’s annual growth is expected to be 33 percent as compared to Amazon.com Inc (NASDAQ:AMZN)’s 22 percent, by 2016. Current annual valuation suggests Amazon.com, Inc (NASDAQ:AMZN) is leading but Alibaba Group Holding Ltd (NASDAQ:BABA)’s rate of growth can overtake it easily.

China, being larger than the U.S, has a bigger market and like every other market, e-commerce in China is expanding. Alibaba Group Holding Ltd (NASDAQ:BABA) connects purchasers with sellers through their websites- Taobao Marketplace, Tmall and Juhuasuan. Alibaba Group Holding Ltd (NASDAQ:BABA) also offers advertising to potential advertisers on their websites whenever a customer searches for any product.

Investors have complained about not enough profit at Amazon.com Inc (NASDAQ:AMZN) as compared to Alibaba Group Holding Ltd (NASDAQ:BABA) which has a low cost infrastructure and a lot of profit making capability. Analysts predict that in the coming months many investors of Amazon.com, Inc (NASDAQ:AMZN) would switch over to Alibaba Group Holding Ltd (NASDAQ:BABA) – a fair move on their part.

Alibaba Group Holding Ltd (NASDAQ:BABA) has made itself the torch bearer of the Chinese online market, and has carved a reputation for itself by making profits for the company and its investors. It’s really rare for company to fulfill the desires of the investors but Alibaba Group Holding Ltd (NASDAQ:BABA) has made everyone happy.

According to online market analysts, they’ll soon join the ranks of big companies and move onto other markets. Alibaba Group Holding Ltd (NASDAQ:BABA) started out in 1999 and has been very consistent with its infrastructure costs. The online market isn’t as stable as other markets but Alibaba Group Holding Ltd (NASDAQ:BABA)’s rise has proved that theory wrong by showing a stable growth. In order to cement their position, they will have to keep their strength consistent and become an ongoing money making company.