In a program on Fox Business, Overstock.com, Inc. (NASDAQ:OSTK)’s CEO, Patrick M. Byrne talked about Alibaba Group Holding Ltd (NYSE:BABA) and said that there is a high chance that Alibaba Group Holding Ltd (NYSE:BABA) has got friends inside the Chinese government, who are helping it to sustain the 86% market share in e-commerce market inside China.
Answering the question about Alibaba Group Holding Ltd (NYSE:BABA)’s arrival in the US and will it shake his company and other e-commerce companies like Amazon.com, Inc.(NASDAQ:AMZN) , Byrne said:
“[…] Just in principal it bothers me but it doesn’t scare me, it doesn’t really bother me, you know the US ecommerce is now 6% of retail, it has got a long way to go […],” said Byrne.
Byrne said that the penetration of big players in the US markets will bring more business and growth in the industry, which is ultimately profitable for all the companies. He said that his company is going to China this January and it will ship products from the US. Interestingly, Byrne revealed that his company’s products will be showcased on Taobao, which is Alibaba Group Holding Ltd (NYSE:BABA)’s website.
According to Byrne, Alibaba Group Holding Ltd (NYSE:BABA)’s main competitors will be the companies that deal in small products. He said that Alibaba Group Holding Ltd (NYSE:BABA) has a strong monetary background and the company will spend a lot of money to get a base in the US. Byrne thinks that his company will not be a direct competitor of Alibaba Group Holding Ltd (NYSE:BABA) as Overstock.com deals in home goods and furniture items.
<<< Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.