Why Alibaba will beat Amazon?
Alibaba has both a cheaper valuation and faster revenue growth than Amazon, which would theoretically make it a better buy. However, Amazon faces less political risk than Alibaba does, which justifies some sort of a premium.
Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, AMZN has a P/B of 6.89. These metrics, and several others, help BABA earn a Value grade of B, while AMZN has been given a Value grade of C.
They're two ecommerce behemoths who enjoy the luxury of very few competitors. While their market shares may be different percentages (Amazon owns 39% of all US ecommerce sales, while Alibaba owns 58.2% of all retail ecommerce shares in China), they each dominate their respective countries in which they began.
Alibaba won't be worth more than Amazon
Amazon has a forward price-to-earnings ratio of 54 and trades at three times next year's sales. Some of Alibaba's investors might believe that if the regulatory headwinds wane, investors will flock back to the stock and rerate the stock at a valuation comparable to Amazon's.
When it comes to revenue generation, Amazon is undisputed. As a matter of fact, during the second quarter of 2020, Amazon's revenue was $88.91 billion against Alibaba's $22.22 billion. Take a look at this overview comparing the two companies by Compare The Market to get the actual figures as of 2019.
JD.com is one of Alibaba's primary domestic competitors in the ecommerce space. Alibaba also faces smaller national competitors and local upstarts across the Chinese landscape, including the Chinese ecommerce site Pinduoduo.
Alibaba wholesalers so benefit from selling in bulk, which can help with packaging and shipping costs. Since many wholesalers are also the manufacturers for Alibaba products, they are able to offer much cheaper prices directly to the consumers.
Drawing a straightforward trend line price chart, BABA shares could reach $1,000 sometime in the first quarter of 2027 if it crawls along with the support level. Alibaba's P/E ratio would compress to a mere 11 times on a forward basis (FY2026) and this is based on the current depressed environment.
The website's algorithm-based analysis projected that the BABA share price could fall to $2.54 by the end of 2022. However, Coin Price Forecast projected the price could recover, although it would take 12 years to return to the previous all-time high above $300.
Its biggest retail competitors are Alibaba, eBay, Walmart, JD, Flipkart, and Rakuten. For the online streaming services audience, Amazon competes with Netflix, Hulu, Apple TV, and Disney+. Amazon's main competitors in the cloud computing industry are Alibaba Cloud and Microsoft Azure.
How high can Alibaba go?
BABA Stock 12 Months Forecast
Based on 15 Wall Street analysts offering 12 month price targets for Alibaba in the last 3 months. The average price target is $145.00 with a high forecast of $181.00 and a low forecast of $115.00. The average price target represents a 69.59% change from the last price of $85.50.
Alibaba seemed destined to become China's first $1 trillion tech company, but it lost 40% of its value over the past 12 months. Its core businesses are strong, but regulatory headwinds are depressing its valuations. Alibaba could still join the trillion-dollar club by 2025 if the regulatory headwinds wane.

Alibaba Stock Price Prediction - Summary
Based on long term forecasts, the price of Alibaba (BABA) will increase to $130 by the end of 2023 then $220 in 2024. Alibaba stock will keep rising and hit the $300 mark in 2025, $350 in 2027 and $410 in 2030.
Alibaba charges for services in marketing and technical support, instead of for admission. This contributes to a large and robust market share made up of loyal customers. Alibaba's profits mainly come from advertisements and keyword bidding, which represents 57% of total profits.
The consensus among 17 Wall Street analysts covering (NYSE: BABA) stock is to Strong Buy BABA stock.
Meanwhile, Alibaba (No. 33) continues to dominate in China. It is the third-largest retailer in the world, with revenue of $109 billion in its latest fiscal year, still a fifth of the size of Walmart.
eBay. Besides Amazon, eBay is probably the most well-known website like Alibaba in America (or worldwide, for that matter). It started out as an auction-only website for person-to-person item sales, and is still mostly known for this.
alibaba.com's top 5 competitors in May 2023 are: aliexpress.com, made-in-china.com, dhgate.com, globalsources.com, and more. According to Similarweb data of monthly visits, alibaba.com's top competitor in May 2023 is aliexpress.com with 440.6M visits.
Jack Ma Yun (Chinese: 马云; pinyin: Mǎ Yún; born 10 September 1964) is a Chinese billionaire business magnate, investor and philanthropist. He is the co-founder of Alibaba Group, a multinational technology conglomerate. In addition, Ma is also the co-founder of Yunfeng Capital, a Chinese private equity firm.
Alibaba reported a 2% fall in cloud-computing revenue for the first quarter. Alibaba Group shares were falling on Friday as the market digested its earnings. Excitement over its plans to spin off a series of its units have been undercut by concerns over its cloud-computing business.
Why is Alibaba valued so low?
Alibaba undoubtedly suffered severe profit headwinds in the past few years due to a range of factors including the aforementioned regulatory tightening, elevated operating costs, and softened consumer demand due to COVID, as you can see clearly from the following two charts.
Alibaba is growing rapidly, with a large consumer and seller network that form a virtuous cycle to drive growth. Alibaba has a huge customer and seller base which provides it with significant pricing power.
Son was an early investor in internet firms, buying a share of Yahoo! in 1995 and investing a $20 million stake into Alibaba in 1999; he was briefly the richest person in the world before the stock market crashed.
One of the ways to make money as a buyer on Alibaba.com is by reselling the products you buy. That's why it's a good idea to determine what products you want to resell. Alibaba.com is a great place to conduct market research to help you find bestselling and profitable products.
Year | Price in the middle of the year | Price at the end of the year |
---|---|---|
2027 | $545.58 | $727.44 |
2028 | $675.16 | $900.21 |
2029 | $886.57 | $1182.09 |
2030 | $1149.81 | $1533.08 |
According to the latest long-term forecast, Alibaba price will hit $100 by the end of 2023 and then $125 by the end of 2024. Alibaba will rise to $150 within the year of 2025, $200 in 2026, $250 in 2027, $300 in 2030 and $350 in 2033.
The calculated intrinsic value of BABA shows that the company is severely undervalued which aligns with the valuations presented in previous articles.
Overall, Alibaba's revenue is expected to recover and be $29.95-32.47 billion for the first quarter of fiscal year 2024, up 6.3% from analysts' expectations for the fourth quarter of fiscal year 2023. However, we believe actual revenue will be lower than the consensus due to negative trends in the Chinese economy.
Alibaba was founded on 4 April 1999 by Jack Ma as a B2B e-commerce site and soon branched out into B2C markets and various other fields. Alibaba now is quite similar to Amazon in terms of the different industries that both operate.
- Online stores.
- Walmart.
- Flipkart.
- Target.
- Alibaba Group.
- Otto.
- JD.
- Netflix.
Can any firm beat Amazon in the marketplace?
Overall, any business has a chance to outperform Amazon in the market. Businesses should concentrate on improving customer service, lowering costs, and using their own data and insights to gain an edge. Additionally, businesses need to be aware that Amazon's fiercest rivals are Google and Jet.com.
Like many modern ecommerce marketplaces, a majority of merchants on Alibaba are reputable and trustworthy, making the marketplace reasonably safe and legit. The company offers Trade Assurance, a verification program for select suppliers, to protect your payments through the Alibaba.com payment platform.
Alibaba Group Holding has a volatility of 3.08 and is 3.62 times more volatile than NYSE Composite. 26 of all equities and portfolios are less risky than Alibaba Group.
But unfortunately, now the show dipped a bit and TRPs dropped down and as we reported the show is going off air and the fans are left disappointed. As per sources, tomorrow will be the last day where the star cast of the show will be shooting for the serial and finally the last episode will be shot.
Financial Health criteria checks 6/6. Alibaba Group Holding has a total shareholder equity of CN¥1,122.9B and total debt of CN¥161.4B, which brings its debt-to-equity ratio to 14.4%. Its total assets and total liabilities are CN¥1,753.0B and CN¥630.1B respectively.
Alibaba (NYSE: BABA) is owned by 1.72% institutional shareholders, 0.00% Alibaba insiders, and 98.28% retail investors. Primecap Management Co is the largest individual Alibaba shareholder, owning 17.28M shares representing 0.08% of the company. Primecap Management Co's Alibaba shares are currently valued at $1.48B.
The Chinese government is buying shares in Alibaba, Tencent and other tech companies, according to the Financial Times. The stakes usually involve a 1% holding and are known as "special management shares."
Stock Price Forecast
The 52 analysts offering 12-month price forecasts for Alibaba Group Holding Ltd have a median target of 139.29, with a high estimate of 180.09 and a low estimate of 73.32. The median estimate represents a +71.98% increase from the last price of 81.00.
More than 100 Chinese companies — including Alibaba, JD.com, and Baidu — had been identified by the US securities regulator as facing delisting in 2024 if they did not hand over the audits of their financial statements.
Interactive chart of historical net worth (market cap) for Alibaba (BABA) over the last 10 years. How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Alibaba net worth as of June 06, 2023 is $223.5B.
Why is Alibaba better than AliExpress?
Alibaba is primarily designed for businesses looking to source products in large quantities. Aliexpress is geared toward individuals looking to buy products in smaller quantities. On Alibaba, buyers and sellers negotiate prices, place orders, and handle logistics.
Ali Baba is a poor woodcutter who secretly watches as 40 thieves hide their booty in a cave, the door to which can be opened only by the verbal command of “Open, Sesame!” He later uses this magic phrase, steals riches from the cave, and lives a prosperous life.
Alibaba provides digital marketplaces for merchants and consumers. Alibaba's largest business is its core e-commerce operations. Alibaba aims to be a leader in the development of the infrastructure of commerce.
Stock Market ETF Strategy And How To Invest
According to Zacks, Alibaba is expected to earn $7.67 a share in its current fiscal year 2023, down 8% compared to fiscal 2022. But growth is expected to pick up in 2024, up 10% to $8.44. Click here to the top-rated stocks in the group.
Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 38 Wall Streets Analysts. Open a brokerage account, see exclusive account opening deals on our Best Online Brokers page.
BABA does not currently pay a dividend.
Customers | Employee Range | Country |
---|---|---|
Ford Motor Company | 10,000+ | United States |
HP, Inc. | 10,000+ | United States |
Melco Crown Entertainment | 10,000+ | People's Republic Of China |
Red Hat | 10,000+ | United States |
The biggest retail company, with TTM revenue of $600.1 billion, is Walmart.
In short — yes! For the most part, Alibaba is very safe for sellers to use. But there are things you need to be aware of when using Alibaba such as counterfeits, payment scams, and suppliers who send high-quality samples but low-quality bulk orders.
How do Amazon and Alibaba differ?
Alibaba is a marketplace where it connects buyers to sellers. It doesn't buy and then resell its own inventory or own a vast logistics network like Amazon. Alibaba's eCommerce model is often compared to eBay's. Amazon, on the other hand has invested billions of dollars to build its own logistics network.
The next most important question that many people have is “Can I ship directly from Alibaba to Amazon FBA?” Yes, you can have your orders shipped to an Amazon FBA warehouse. You must also take into account shipping costs from Alibaba to Amazon FBA.
- 1 – “Cheap” branded products. ...
- 2 – Price increase after you place your order. ...
- 3 – High-quality sample, low-quality products. ...
- 4 – Branded products with fake trademarks. ...
- 5 – Non-delivery scams. ...
- 6 – Fake Alibaba profiles. ...
- 1 – Trade Assurance. ...
- 2 – Gold suppliers.
Like many modern ecommerce marketplaces, a majority of merchants on Alibaba are reputable and trustworthy, making the marketplace reasonably safe and legit. The company offers Trade Assurance, a verification program for select suppliers, to protect your payments through the Alibaba.com payment platform.
Is Alibaba legit? Alibaba is one of the largest e-commerce portals in China — and perhaps the world — so it's definitely legitimate. The suppliers who sell through it, though, are another story. While the majority of them are there to do business honestly, there have been some cases of them scamming their customers.
The number one benefit of using alibaba.com is you have instant access to a countless number of global suppliers who sell just about any product known to man, and you can normally find low wholesale pricing. This can mean big profits by buying your supplies at rock bottom prices and selling at premium retail prices.
Alibaba charges for services in marketing and technical support, instead of for admission. This contributes to a large and robust market share made up of loyal customers. Alibaba's profits mainly come from advertisements and keyword bidding, which represents 57% of total profits.
Alibaba provides digital marketplaces for merchants and consumers. Alibaba's largest business is its core e-commerce operations. Alibaba aims to be a leader in the development of the infrastructure of commerce.
Stock Price Forecast
The 51 analysts offering 12-month price forecasts for Alibaba Group Holding Ltd have a median target of 138.76, with a high estimate of 179.40 and a low estimate of 72.26. The median estimate represents a +55.37% increase from the last price of 89.31.
One of the ways to make money as a buyer on Alibaba.com is by reselling the products you buy. That's why it's a good idea to determine what products you want to resell. Alibaba.com is a great place to conduct market research to help you find bestselling and profitable products.
Is Alibaba like Amazon or Google?
While Amazon and Alibaba each have distinct features that make them purely e-commerce companies, their respective business models differ greatly. Amazon is a massive retailer for both new and used goods, and Alibaba operates as a middleman between buyers and sellers.
Can Anybody Order from Alibaba? Yes, anyone can order from Alibaba. Alibaba is the largest supplier directory where a single person can order directly from a manufacturer. But remember that Alibaba doesn't make anything, they feature manufacturers who will work with both individuals and companies.
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