Alibaba (NYSE: BABA) is often called “Amazon (NASDAQ: AMZN) of China “because it is the largest e-commerce and cloud company in the country.

However, Alibaba is still much smaller than its American counterpart. Analysts expect Amazon to generate more than three times the revenue of Alibaba this year, and its $ 1.7 trillion market cap dwarfs Alibaba’s market cap of about $ 333 billion.

But could Alibaba catch up with Amazon by the end of the decade? Let’s take a fresh look at these two tech giants and their plans for the future to find out.

Image source: Getty Images

The differences between Alibaba and Amazon

Alibaba and Amazon are superficially similar, but their business models are very different. Alibaba derives the majority of its sales and all of its profits from its trading business, which includes its online marketplaces, brick and mortar stores and its logistics business. The profits from the commerce segment support the ongoing …



Source link

Leave a Reply