Amazon.com, Inc. (NASDAQ:AMZN) could potentially form a partnership with newly NYSE-listed Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA), who are expected to be aggressive in their pursuit of acquisitions and partnerships as they look to expand globally. According to Rosenblatt Securities’ Brian Blair, who spoke with Bloomberg, he believes such a partnership could happen.
“I could, absolutely, it might be a few years down the line. What’s interesting is that Ma (Alibaba executive chairman Jack Ma) is spending some time today meeting with a lot of important players in New York and around the country, right after this IPO. So he’s instantly part of this club, and I think that he’s going to be meeting with everybody, open to partnerships, but I wouldn’t be surprised to see him initially make a run at it himself,” Blair said.
Jack Ma said during a separate interview with Bloomberg yesterday that such a partnership with Amazon.com, Inc. (NASDAQ:AMZN) was possible, and that they would consider anything that would help small businesses. How such a partnership could work is unclear however, as is whether Amazon.com, Inc. (NASDAQ:AMZN) would have any interest in partnering on their home turf with a company that is essentially a major new competitor.
Perhaps a partnership limits the potential threat Alibaba Group Holding Ltd (NYSE:BABA) could pose to Amazon.com, Inc. (NASDAQ:AMZN), but it seems more likely Amazon.com, Inc. (NASDAQ:AMZN) would seek to maintain their position and not help a competitor establish any kind of foothold in their domain.
After Alibaba Group Holding Ltd (NYSE:BABA)’s record IPO opening yesterday, the company is now valued at $227 billion, more than Amazon.com, Inc. (NASDAQ:AMZN)’s $150 billion valuation. Despite Amazon.com, Inc. (NASDAQ:AMZN)’s vastly superior revenue of $74.5 billion to Alibaba Group Holding Ltd (NYSE:BABA)’s $8.6 billion, they generated far less profit than the Chinese company, just $274 million to their $3.7 billion.
Amazon.com, Inc. (NASDAQ:AMZN)’s stock is down 16.92% year-to-date, on disappointment over their continuing inability to generate much profit from their operations.
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