E-commerce giants: Amazon vs. Alibaba - who is the winner? Conclusion from a financial expert

E-commerce giants: Amazon vs. Alibaba - who is the winner? Conclusion from a financial expert

According to a report by www.aktienwelt360.de, the two giants Amazon and Alibaba emerged as big winners in the highly competitive e-commerce market. Amazon increased its net sales by 13% to $143 billion in the third quarter of 2023. The North American market in particular contributed to growth with an increase of 11% to almost 88 billion US dollars. Operating profit increased to an impressive $11.2 billion compared to $2.5 billion in the same quarter last year, primarily due to strong growth in the Amazon Web Services (AWS) division.

In comparison, Alibaba recorded a sales increase of 9% to the equivalent of $30.81 billion in the second quarter of 2023. The operating result rose by 34%. The international business performed particularly strongly with an increase of 53%, but the cloud business here only grew by 2% and was disappointing compared to Amazon.

The different assessment levels take this into account. Alibaba shares are trading with an expected P/E ratio of 9.3, while Amazon has a value of over 73. For now, Amazon appears to be the clear winner in the duel between the e-commerce giants.

This development could have an impact on the stock markets and the financial sector in the future. In particular, investors could invest more in Amazon, while confidence in Alibaba could decrease due to the uncertainties and challenges. This could lead to further strengthening of Amazon as the dominant player in the e-commerce market.