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200B valuation is actually very reasonable: it's PE would be roughly 35 compared to Amazon's 400. Now the big question which I have not been able to figure out
by boomzilla 12y ago
200B valuation is actually very reasonable: it's PE would be roughly 35 compared to Amazon's 400. Now the big question which I have not been able to figure out from their S1 is why they have so much more margin compared to Amazon, given the two are operating more or less in the same space. Is that because US is a free (and more efficient) market, where China has more artificial barriers for other players?
- instoftech 12y agoAlibaba's model (in eCommerce) is very different from Amazon's. Alibaba is only the middle-man platform, and doesn't keep its own inventory or warehouse.
- tormeh 12y agoI think Alibaba does more bulk shipments, connecting manufacturers. Alibabas' customers are businesses, Amazon is a consumer company. They are not comparable at all. Searching for pens on Alibaba gives you offers with minimum shipment of 500 pens.
- khc 12y agoThat's only talking about the Alibaba site itself. They own several gigantic websites that in the consumer business (taobao, t-mall, etc).