Amazon.com, Inc. (NASDAQ:AMZN) and Alibaba Group Holding Ltd (NYSE:BABA) might be gearing up for war. Once the hoopla surrounding Alibaba Group Holding Ltd (NYSE:BABA)’s IPO dies, the company will start focusing on its operation in US and Europe. KCG Holdings’ A.B. Mendez and Cory Johnson recently discussed on Bloomberg, the new products launched by Amazon.com, Inc. (NASDAQ:AMZN) and how will the company face the threat from Alibaba Group Holding Ltd (NYSE:BABA).
“Well, I think Kindle makes a lot of sense for Amazon, I think when they first came out into the e-reader business. They were originally physical booksellers and then we started to see ebooks, Amazon.com, Inc. (NASDAQ:AMZN) needed to have a hit device in that space and with Kindle they did, that was Amazon’s iPhone so to speak, but they keep creeping in to more and more verticals, smartphones web connected TVs, Tablets […],” Mendez said.
According to Mendez, Amazon.com, Inc. (NASDAQ:AMZN) needs to be in the tablet space because a lot of e-reading activity takes place through them.
Johnson believes that even though Amazon.com, Inc. (NASDAQ:AMZN) and Alibaba Group Holding Ltd (NYSE:BABA)’s business model are somewhat different, Amazon.com, Inc. (NASDAQ:AMZN) must be concerned of any kind of e-retailer, which includes Alibaba Group Holding Ltd (NYSE:BABA). He feels that the user experience on the websites operated by both these companies is different and though Alibaba Group Holding Ltd (NYSE:BABA) is trying to work on the same features provided by Amazon.com, Inc. (NASDAQ:AMZN), it is still time before it can pose a real challenge to Amazon.com, Inc. (NASDAQ:AMZN) on its home turf.
As of June 30, 2014, Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN).
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