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Alibaba Vs. Amazon: Market Cap, Growth Rate, Profit Margins And Sales

17 May 2018

Like Amazon (AMZN), Chinese internet giant Alibaba (BABA) is now involved in an ever-expanding range of businesses, from e-commerce and payment processing to cloud computing and entertainment. But how do these two tech titans stack up in terms of market cap, revenue, earnings growth and profit margins? And are both stocks poised to keep climbing?

While both companies remain dominant players in the e-commerce space where they began, Amazon is now a clear leader in cloud computing through Amazon Web Services (AWS), which generated $5.4 billion in revenue in Q1. By comparison, Alibaba’s cloud computing revenue rose 103% in its most recently reported quarter to $699 million.

As Amazon has also ventured into voice-control technology through Alexa, the grocery business with its purchase of Whole Foods Market and hardware with devices such as Amazon Fire tablets and Fire TV sticks, Alibaba also continues to expand.

Last year, Alibaba took a 33% stake in Ant Financial to increase user acquisition and retention in collaboration with its Alipay digital wallet.

Amazon Prime Vs. Alibaba’s 88 Membership

Amazon Prime has proved to be a distinct competitive advantage for Amazon, keeping customers inside Amazon’s ecosystem. For a recently raised price of $119 per year, Prime members get free shipping, free movie streaming, free music, free online storage and more. Last month, Jeff Bezos revealed that there are now over 100 million Prime members.

Last August, Alibaba announced 88 Membership, its own new loyalty program. The new program consolidates similar clubs previously offered by Alibaba-owned Tmall and Taobao Marketplace. Alibaba has not announced membership numbers.

Amazon and Alibaba have both moved aggressively into the entertainment business. Alibaba creates movies, TV shows and other entertainment content through its subsidiary, Alibaba Pictures Group.

As Amazon’s rivalry with fellow FANG stock Netflix (NFLX) has intensified, Amazon has increased its spending on original content. MediaPost has reported that Amazon is expected to spend approximately $5 billion this year on original content. Netflix is seen investing $8 billion in its movies and TV shows.

Source: Investors