Deep dive on Alibaba vs Amazon

Alex Pollak

Loftus Peak

Deep dive on Alibaba vs Amazon. Disclosure: Loftus Peak clients hold Alibaba and Amazon. Alibaba has been coming off from its first-day jump of 34 per cent. A run-around on the commentary revealed some variance in views, but very little in terms of hard data on the investment case. Here then is a deeper dive into BABA, with comparisons to that other retail behemoth, Amazon. Alibaba is quite a different beast to Amazon. It derives its sales on the percentage of gross merchandise volume (or GMV) that it sells. GMV for the most recent quarter was $US81.7 billion ($92.5 billion) - up a whopping 45 per cent a year. I expect there to be some lumpiness in these figures, but the mere fact that a company can get to an annualised rate of $US327 billion in sales at 45 per cent growth is staggering. (Walmart sales are $US473 billion). (VIEW LINK)

Alex Pollak
Loftus Peak

CIO of Loftus Peak, a specialist global fund manager with a track record of successful investment in some of the world's fastest-growing listed businesses.

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