This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Will Success Spoil Alibaba?

Stocks in this article: YHOO AMZN EBAY GRPN PCLN

It already fills Amazon's cloud computing niche with Aliyun. It fills the niche of eBay's (EBAY) Paypal with Alipay. It has its own version of Groupon (GRPN). It has its own version of Priceline (PCLN) or PriceGrabber. 

Does it really do all of these things well? Will it be allowed to keep dominating its home market at the same time it attacks the European and U.S. markets?

Alibaba does offer one service that is unique: its original niche. That is its business-to-business service, Alibaba.com. Launched in 1999, at the height of the dot-com mania, Alibaba is likely to remain unassailable as a business-to-business site, the best way for U.S. retailers to acquire imported goods efficiently.

Its slogan: global trade starts here.

If your little cooking shop wants to get in on the new craze for rock salt, you can order it in lots as small as 200 through Sana-Traders.com, a Pakistani company, on Alibaba.

That's a unique niche. That's a company worth buying and holding on to.

The rest of Alibaba is a speculation. Can Alibaba get you goods faster than Amazon? Maybe if you live in Chengdu. Can they do it if you live in Seattle or Chicago, or Liverpool or Leeds? How about their other e-commerce markets -- can they keep Amazon out while growing their U.S. footprint?

Will Alibaba remain on cozy terms with China's leaders? Do you want to put money at risk betting on that?

Stay tuned.

At the time of publication, the author owned shares in AMZN, YHOO and GOOG but held no positions in any of the other stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs