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Expert: Alibaba's Jack Ma Won't Pick A Fight With Jeff Bezos

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If investors were expecting a big fight between Alibaba Group Holding Ltd (NYSE: BABA) founder Jack Ma and Amazon.com, Inc. (NASDAQ: AMZN) founder Jeff Bezos, they might be disappointed.

Alibaba commands the Chinese online retail market with impressive results and a notable sales holiday, known as Singles Day, that surpassed Black Friday in 2014. The company is expected to eventually turn its holiday (which is a celebration for those who are single) into a worldwide phenomenon.

If successful, it could easily become the biggest shopping day of the year and permanently replace Black Friday and Cyber Monday.

That can only happen if Ma intends to take on Bezos, however.

"I don't think that Jack Ma wants to come here and fight Jeff Bezos and the Amazon business model," Cody Willard, chairman of Scutify (a financial social network), told Benzinga. "It would be too expensive and neither company would win. The consumer would win but the companies would suffer tremendously. I think Jack Ma knows that."

Related Link: Alibaba Needs An 'Apple-Esque' Quarter To Ignite The Stock

That's not to say that Alibaba won't find success in America. Willard simply thinks the firm will succeed in a different way.

"They'll come here but they won't compete directly with Amazon," Willard explained. "I think if anything they'll end up competing with…the supply chain that Lowe's Companies, Inc. (NYSE: LOW), Home Depot Inc (NYSE: HD) and Wal-Mart Stores, Inc. (NYSE: WMT) use to get their [items] from China.

"There's a much bigger market to disrupt there. There's no competitors for him to face. I just don't think he wants to come here and be an Amazon, Wal-Mart, Supercenter retail outlet."

Alibaba will report its December quarter results on Thursday, January 29 before the market open. 

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Latest Ratings for BABA

DateFirmActionFromTo
Feb 2022BarclaysMaintainsOverweight
Feb 2022StifelMaintainsBuy
Feb 2022CitigroupMaintainsBuy

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