Why is Alibaba so much cheaper than Amazon?

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Why is Alibaba so much cheaper than Amazon?

However, keep in mind that Alibaba is generally priced lower than Amazon because of the perceived risk of investing in China. The potential for greater regulation by the Chinese government, which can spring on investors at unpredictable times, is something investors must consider before buying shares of Alibaba.

Why is Amazon better than Alibaba?

While Amazon and Alibaba each have distinct features that make them purely e-commerce companies, their respective business models differ greatly. Amazon is a massive retailer for both new and used goods, and Alibaba operates as a middleman between buyers and sellers.

Is everything on Amazon from Alibaba?

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Made by Alibaba, shipped by Amazon After sellers ship their products directly from Chinese factories to Amazon’s warehouses in the US, Amazon will “pick, pack, ship, and provide customer service for these products,” according to the company’s website.

Which is more profitable Amazon or Alibaba?

When it comes to revenue generation, Amazon is undisputed. As a matter of fact, during the second quarter of 2020, Amazon’s revenue was $88.91 billion against Alibaba’s $22.22 billion.

What is the difference between Amazon and Alibaba?

1 Amazon and Alibaba are both e-commerce giants operating largely without physical stores. 2 Amazon dominates the American shopping space, while Alibaba does the same in China. 3 Amazon sells products directly while also serving as an intermediary for other sellers, taking a cut of the sale.

Is Amazon stock up more than double that of its rival Alibaba’s stock?

But hold on a minute, Amazon’s rival Alibaba’s stock (NYSE: BABA) is up a much smaller 26\% during the same period. Hard to believe, but Amazon stock is up more than quadruple that of Alibaba.

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Is Alibaba’s PE ratio better than Amazon?

Amazon’s P/E is much higher at 107x based on its current market price and FY’19 EPS, while Alibaba’s PE is 50x. While Amazon’s PE has increased from around 70x in 2018 to 100x now, Alibaba’s PE is roughly the same (50x) as it was in 2018. This explains part of the growth in Amazon stock when compared to Alibaba.

What is the business model of Al Alibaba?

Alibaba, on the other hand, created a business model that is surprisingly different from Amazon’s… Unlike Amazon which operates as a single unit, Alibaba is divided into three core businesses: Alibaba, Taobao, and Tmall.

https://www.youtube.com/watch?v=6vO0nGP-YaA