Alibaba vs amazon and share price

[bthewalls]

Guys and gals,
Why is alibaba not posing as a real competitor to amazon. I struggle to see why there not growing quickly in that direction and share prices going skyward.

Are there poorly run?
Lack the infrastructure and tech?
As a company why aren’t alibaba really chewing up more of that type of market?

Baz

[reeshau]

The share price isn't going to skyrocket at all, until US delisting is no longer a threat.

As for direct competition, they would need to be competing in the same markets to be taking each other's market share.  Alibaba entered the US in 2014, and exited in 2016.

Then there is the whole Jack Ma disappeared for 9 months thing.  Even when Trump was US President, nobody worried that Jeff Bezos would disappear for 9 months.

[tamuaggie2011]

There is always going to be some fear around Chinese stocks (BABA included) while conversely here in the US Amazon is beholden to so many people and this has pushed the stock price through the roof the past couple of years.

While efficient market theory should ring true eventually I see Amazon being overvalued and BABA being undervalued for a long time to come. As Ben Graham noted "Just because you know a stock is overvalued doesn't mean the market will reflect that anytime soon"

[bthewalls]

I wonder is BABA worth a long punt.....even bezos says that at some point Some company will come along and overtake them.

[shureShote]

As noted it is super hard to directly compare them. Could be Amazon is pumped high for no reason. Could be that BABA is a house of cards.  Could be, could be. Maybe in 20 years the picture will be clear.

I hold an old legacy position at TRP of their Science and Technology fund. It holds about 5.5% in Alibaba and 7.4% in Amazon. That pretty much means nothing, but I thought since I looked it up I would add it.

[bthewalls]

As noted it is super hard to directly compare them. Could be Amazon is pumped high for no reason. Could be that BABA is a house of cards.  Could be, could be. Maybe in 20 years the picture will be clear.

I hold an old legacy position at TRP of their Science and Technology fund. It holds about 5.5% in Alibaba and 7.4% in Amazon. That pretty much means nothing, but I thought since I looked it up I would add it.

Cool. Yeah baba just don’t have as good a set up