Amazon Vs. Alibaba: Which Cathie Wood E-Commerce Stock Is A Better Buy?

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Amazon.com, Inc. (AMZN) and Alibaba Group Holding Limited (BABA) are two of the world’s largest e-commerce platforms, as well as two of the most valued companies globally. AMZN and BABA together dominate online global sales volume and are two of the most profitable companies in this industry.  And because the popularity of the e-commerce industry is expected to continue increasing even as the COVID-19 pandemic retreats, we think the two companies still have immense upside.

The industry tailwinds and promising outlook make both stocks ideal investment bets for Cathie Wood.  She holds approximately 19,800 shares of AMZN, which translates to a 0.15% weighting across ARKX and ARKF. The stock has a #117 weighted rank across both the funds. She owns some 630,989 shares of BABA, which equates to a 0.32% weighting across ARKX, ARKF, and ARKQ. BABA is ranked #75 across all Ark funds.

AMZN has gained 41.1% over the past year, while BABA returned 16.3% over this period. In addition, AMZN shares have gained marginally year-to-date, while BABA’s shares declined by 2.6%. In terms of their past month’s performance, AMZN is the clear winner with 1.4% returns versus BABA’s 0.7% gains. But which of these two stocks is a better buy now? Let’s find out.

Latest Developments

On April 27, AMZN extended in-garage grocery delivery to Amazon Prime users in more than 5,000 cities in the U.S. . With online grocery shopping increasingly replacing traditional in-store shopping due to its efficiency, AMZN’s newly introduced services are expected to be a big hit.

The company has been expanding its cloud computing services periodically over the past couple of months, making Amazon Web Services one of the biggest cloud providers worldwide. AWS launches new software integration and updates nearly every day, making it one of the most used software worldwide.

Earlier in February, AMZN’s founder Jeff Bezos stepped down as CEO to become an executive chairman of the board. He was replaced by Andy Jassy, formerly the CEO of AWS. Bezos has sold roughly $2 billion worth AMZN shares over the past week. This follows the former CEO’s sales of nearly $7.10 billion worth shares last year. However, Bezos previously stated that he is reducing his stake at AMZN to fund his space exploration company.

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