Alibaba Group Holding Ltd (NYSE:BABA)’s Singles’ Day sale is just around the corner. This is huge for the Chinese consumers as well as Alibaba itself as this lone day has the potential to generate revenue in the worth billions of Yuan. Jim Cramer, who was bullish on Alibaba, spoke about what made the Chinese online market place different from its American counterpart Amazon.com Inc. (NASDAQ:AMZN) on CNBC’s ‘The Mad Dash’.
Cramer discussed about the different business models followed by the two e-commerce giants. While Amazon.com, Inc. (NASDAQ:AMZN) concentrated more on spending, Alibaba Group Holding Ltd (NYSE:BABA) was rather tight about its finances with the no inventory, no warehouse model. In a way, it could be considered to be an amalgamation of Amazon and eBay Inc (NASDAQ:EBAY). Alibaba also has huge revenue from the advertising sector. “I regard Alibaba as Amazon but it also has earnings,” he said.
Alibaba Group Holding Ltd (NYSE:BABA)’s strengths against Amazon.com, Inc. (NASDAQ:AMZN) are further bolstered by the fact that the Chinese do not hesitate to spend their money through online shopping websites.
Last year, Alibaba Group Holding Ltd (NYSE:BABA) created a record of sorts reporting sales figures reaching 35 billion Yuan, which translates into $5.75 billion, during a 24-hour period. This trend is anticipated to be seen this year as well and it will have a major impact in the company’s fourth quarter result.
Alibaba Group Holding Ltd (NYSE:BABA)’s sale coincides with the celebration of Singles’ Day, the Chinese equivalent of Valentine’s Day. “Is this Christmas, Hanukkah and Valentine’s Day all put together,” quipped Cramer referring to the huge turnaround generated on a single day. In fact, the Singles’ Day sale is so huge that there is a noticeable drop in buying immediately before the day as users wait for the big day to make all their big buys and get the most out of the discounts.
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