Watch out Amazon, and Ebay as there is a new e-commerce giant that is actually posting better profits then your 2 companies combined. Alibaba is an e-commerce site similar to Amazon that allows consumers to buy goods online. One major difference, however, is the fact that Alibaba has no actual inventory as it instead connects customers with small businesses. The company opened on the New York Stock Exchange with an 38% increase from their IPO in one day establishing it’s ground in the eyes of investment bankers. Furthermore, their financial statements show an exponential growth pattern with 2012 net income increasing from $1.36 billion to $3.81 billion in 2013. This is in stark contrast with Amazon which posted a loss of $39 million in 2012 and net income of $274 million in 2013. This differential might not only help Alibaba attract investors but also entice some to jump off the Amazon bandwagon looking to instead penetrate the Chinese Market.
With plans to get into the Europe and US market, Alibaba has a large potential to grow and increase revenue while competition such as Amazon try to toil in the smartphone and tablet industry. The only negative for Alibaba is that Yahoo is leaching off their profits.