Amazon’s cloud computing development challenges Alibaba

Although Chinese e-commerce giant Alibaba has not yet opened operations in the US, the rapid development of US e-retailer Amazon, particularly in cloud computing, poses a great challenge to the Chinese company, the Shanghai-based China Business News reports.

 

Alibaba created a miracle in September 2014 with a record-breaking flotation on the New York Stock Exchange (NYSE). The rise in its stocks sent the company’s value to over US$231 billion, exceeding the combined market capitalization of Amazon and eBay, the two leading US e-commerce companies…

 

However, Amazon’s shares have jumped about 59.38% from US$284 to US$452.65 over the past six months. At its closing share price on June 26, Amazon’s market value was US$203.45 billion, not far off Alibaba’s US$205.29 billion.  The main driving force behind the rise in Amazon’s shares however was not its e-commerce business but its cloud computing services, the report said…

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