Loading...
Loading...
If investors were expecting a big fight between
Alibaba Group Holding LtdBABA founder Jack Ma and
Amazon.com, Inc.AMZN founder Jeff Bezos, they might be disappointed.
Alibaba commands the Chinese online retail market with impressive results and a notable sales holiday, known as Singles Day, that
surpassed Black Friday in 2014. The company is expected to eventually turn its holiday (which is a celebration for those who are single) into a worldwide phenomenon. If successful, it could easily become the biggest shopping day of the year and permanently replace Black Friday and Cyber Monday.
That can only happen if Ma intends to take on Bezos, however.
"I don't think that Jack Ma wants to come here and fight Jeff Bezos and the Amazon business model," Cody Willard, chairman of
Scutify (a financial social network), told Benzinga. "It would be too expensive and neither company would win. The consumer would win but the companies would suffer tremendously. I think Jack Ma knows that."
That's not to say that Alibaba won't find success in America. Willard simply thinks the firm will succeed in a different way.
"They'll come here but they won't compete directly with Amazon," Willard explained. "I think if anything they'll end up competing with…the supply chain that
Lowe's Companies, Inc.LOWLoading...
Loading...
,
Home Depot IncHD and
Wal-Mart Stores, Inc.WMT use to get their [items] from China. There's a much bigger market to disrupt there. There's no competitors for him to face. I just don't think he wants to come here and be an Amazon, Wal-Mart, supercenter retail outlet."
Alibaba will report its December quarter results on Thursday, January 29 before the market open.
At press time the stock was trading down more than three percent.
Disclosure:
At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted In: ExclusivesTechAlibabaAmazonBlack FridayCyber Mondayhome depotJack MaJeff BezosLowe'sSingles DayWal-Mart
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in