Alibaba or eBay Stock?

Who is used to play on the stock exchange is also used to make comparisons between different competing companies, as well as in recent days as in the coming you will be comparing the shares of Alibaba and those of eBay. Although in reality it would be Amazon the site more similar to Alibaba, it should be considered that Alibaba moves on many fronts because of the structure of sites it manages directly, so you can make a comparison with a giant of e-commerce, eBay. There’s nothing original about this comparison, since it was always Alibaba herself who waged war on eBay, as you can see in this funny picture, with Alibaba’s staff dressed in a war suit.

Is Alibaba or eBay Better?

There are a lot of data that can be taken into consideration, so we’ll try to keep more in mind those that should give a better idea of the proportions of Alibaba. In fact, many people have no idea what it is, but soon they will discover a monster of e-commerce.
The first data we take into account is the volume of gross merchandise from 2012 to date. As you can see from the graph, eBay seems to be the prodigy of constancy. It’s improving but it’s practically still. It’s constant in its result. Alibaba, however, since 2012 has almost tripled the result. Note that the chart shows 4 quarters of which the last is a forecast. Do not underestimate the forecast, because it is based on very realistic assumptions, as well as statistical.

Who Buys on Alibaba?

No, we are not wondering if there is anyone who buys on Alibaba, but the type of target reached. Now, considering the following graph, there would be several considerations to make.
Alibaba has reached 231 million active buyers thanks mainly to a huge market, the Chinese one, which has a billion and a half inhabitants. Ebay, which is however known throughout the world, has “only” 140 million. The first consideration is: what will happen after the IPO of Alibaba shares? The IPO is just the first move to “conquer” the West, after which it will really be war between Alibaba and its competitors. The second consideration is: is Alibaba’s success in 2014, with revenues higher than Amazon and eBay combined, to be considered all thanks to the Chinese market?
Apparently not, because there is one quite alarming fact to consider: mobile users. On the latest (huge) data of Alibaba sales, the users who bought from mobile were 30%, reaching 180 million, with growth of 25 million in the last quarter alone. This is the effect of a care in the strategies for the future, where it will be the mobile to dominate. As far as mobile users are concerned, Alibaba is currently unrivalled and the Chinese government seems to be playing the game with the company. By 2020, in fact, 85% of the population will be covered by broadband (3G, 4G), to perfectly cover 1,200,000,000 inhabitants. Sorry if we write the number in full, but otherwise does not give an idea. Those who think that China is still lagging behind on technology, understood as popular technology, are really wrong.

Ebay Doesn’t Fear Rivals

When a serious company like eBay has been on the market for 20 years, since practically the internet began to give the first wanderings behind the large masses ready to welcome it, it is not surprising that the same company relies on its experience and its brand. If, for example, a great rival of Coca Cola comes out, it’s not certain that Americans, historically fond of Coca Cola, stop drinking it to switch to another product. It’s normal then that eBay can show its muscles, and this consistency in results is a factor that proves it. eBay simply does “its duty” and has practically become a reference point for online purchases between users, in the first place, and between users and online stores, in the second.
The same thing was seen between Swatch and Apple, where the latter, before launching the iWatch, launched the challenge to Swatch and even promised to sink it. Swatch, on the other hand, replied that at most Americans who have a watch, but who are not afraid to lose customers who are now fond of the quality and style offered by the historic company, will increase.

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