Alibaba Surges, Amazon Beats Walmart: A Tale of Two E-commerce Giants

Alibaba Group Holding Ltd (NYSE:BABA) stock surged 12.8% on February 21, 2025, after the company reported strong quarterly profits and revenue growth. The Chinese e-commerce giant's net income for the quarter ending December 31, 2023, was 48.95 billion yuan ($6.72 billion), exceeding analyst expectations of 40.6 billion yuan. Revenue rose 8% to 280.15 billion yuan ($38.6 billion), the fastest pace of growth in over a year. This news sent Alibaba's stock soaring to its highest level since November 2021, well above all short- and long-term moving averages.

Amazon.com Inc (NASDAQ:AMZN), on the other hand, reported a 13% increase in net sales for the third quarter of 2023, reaching $143.08 billion. The company's strong performance was driven by its cloud computing division, Amazon Web Services (AWS), which contributed significantly to overall profitability. Amazon's net sales for the twelve months ending September 30, 2023, were $554.028 billion, a 10.32% increase year-over-year. Over 50% of U.S. households now hold an Amazon Prime membership, further solidifying the company's dominance in the e-commerce market.



Alibaba's aggressive expansion in AI infrastructure and international retail markets has helped the company regain momentum after years of regulatory challenges in China. The company's Qwen AI model, launched in 2023, has continued to evolve, with its latest version, Qwen 2.5, reportedly outperforming local competitors. Alibaba's international commerce unit, which includes platforms such as AliExpress, Trendyol, and Lazada, saw revenue growth of 32% driven by strong performances from cross-border businesses.

Amazon's recent performance can be attributed to its relentless focus on innovation, long-term thinking, and continuous expansion into new markets and services. The company's diversification into cloud computing and content creation has allowed it to maintain its competitive edge in the face of intense competition in the e-commerce space. Amazon's acquisition of Whole Foods in 2017 marked a critical turning point, allowing it to establish a foothold in the grocery sector and challenge Walmart's dominance.

Walmart Inc (NYSE:WMT), the world's largest retailer, has also seen growth in its e-commerce presence. The company's overall share of U.S. online sales climbed from 5.4% in 2019 to 6.4% in 2023. Walmart's success can be attributed to its extensive network of physical stores, which it leverages to enable delivery and pickup services. This strategy has allowed Walmart to sidestep the fulfillment center strains experienced by Amazon and capitalize on the convenience of online grocery purchases. However, Amazon's dominance in the e-commerce market remains unchallenged, with Walmart still trailing behind in terms of market share and overall sales.



In conclusion, Alibaba's surge in stock price can be attributed to its strong quarterly profits and revenue growth, as well as its aggressive expansion in AI infrastructure and international retail markets. Amazon's recent performance has been driven by its relentless focus on innovation, long-term thinking, and continuous expansion into new markets and services. Walmart, while experiencing growth in its e-commerce presence, still trails behind Amazon in terms of market share and overall sales. As the e-commerce landscape continues to evolve, investors should keep a close eye on these three giants and their respective strategies to capitalize on future growth opportunities.