Battle of the GIANTS!steemCreated with Sketch.

in #amazon8 years ago

Battle of the Giants

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Alibaba
Amazon
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Trailing P/E: 52.03
Trailing P/E: 332.79
Forward P/E: 27.04
Forward P/E: 164.18
EPS: $3.61
EPS: $3.92
Revenue: $30.29 Billion
Revenue: $161.15
Quarterly Revenue Growth (YOY): 60.70%
Quarterly Revenue Growth (YOY): 33.70%
Quarterly Earnings Growth (YOY): 131.80%
Quarterly Earnings Growth (YOY): 1.60%
Profit Margin: 30.87%
Profit Margin: 1.2%
Market Cap: $481.84 Billion
Market Cap: $628.939 Billion
Stock Price: $187.79
Stock Price: $1305.20

November 11th, 2017 was Alibaba's Singles Day which for those unfamiliar is a special day that Alibaba created kind of like the United States’ “Black Friday”. Alibaba’s Singles Day had over $1 billion dollars in sales within the first few minutes of the sale, and they grossed over $25 billion dollars by the end of the day. Also, Alibaba is more than just an E-commerce they have: Alipay, tmalls, cloud computing, mobile commerce, core commerce, digital media, entertainment, Taobao marketplace, etc...

Alibaba is so undervalued: Their $25 Billion of sales on Singles Day will be reflected on their 2017 Q4 report; this one day sale is equivalent to almost their entire last 3 quarters. Their quarterly earnings growth (YOY) is growing at 130.2% greater than Amazons’, and their profit margin is 29.67% greater than Amazon. Amazon cannot really figure out how to make a profit.

I really think long term Alibaba is much better. Due to the fact that Alibaba has Alipay which real close to taking over Tencent. Digital funds on phones are on the rise, and Alipay is fighting to be the most used digital pay versus Tencent. It appears Alipay will take the 1st spot very soon. Alipay is also expanding into the U.S. and Alibaba is expanding into India.

Alibaba deserves a higher evaluation due to their growth being higher; you have almost 2 billion people in a very dense area. China had a 6.8% GDP Q3 growth. While the U.S. only had a 3.3% GDP Q3 growth. Wall Street constantly dogs on China for only have a 6.8% but they are overjoyed with the U.S. having a 3.3% growth. When all reality China is growing at double our GDP. This is giving Alibaba an edge on their growth vs amazon’s. For example, Alibaba cloud computing is growing at a 100% YOY versus Amazon’s 43%.

Alibaba’s cloud is already the largest public cloud computing service provider in China. And with over one million paying customers, it is the third largest worldwide.

Not taking anything from Amazon, they are a great company. I just think Alibaba is undervalued compared to Amazon and deserves a much higher evaluation. I predict a higher evaluation of $240 per share by the end 2018 which is about half of what it grew last year. This would be a very conservative target price in my opinion.

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Alibaba is up around 10% since this post Amazon 17% I still have $240 price for 2018 I would recommend sell today at close and buy back at a 5% pullback this stock normally goes up to earnings then sells off good luck

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