Investors know that Amazon is hot. They continue to expand into new markets and consistently grow earnings for shareholders. But one thing that holds back some investors, especially small-time investors is the stock price. At over $1,000 per share, it just isn’t possible for some investors to get a nice stake in the company. But there is hope and it is called Alibaba.

Alibaba (BABA) is the Amazon of China and in many ways, is ahead of them in terms of offerings. And the good news for small investors, its stock price is not out of reach.

Today I am going to show you why I feel Alibaba is a smarter investment than Amazon.

Who Is Alibaba?

As I mentioned, Alibaba is the Amazon of China. In addition to being an online retailer, Alibaba also offers other things as well. For example, they offer online storefronts for agricultural products. They also offer other services as well, including:

All told, Alibaba is a dominant player in China. And while China is its main market, it has operations in over 200 countries.

Why The Future Is Amazing For Alibaba

To understand why the future is so bright for this company, you have to look at the economy in China. To begin, China has an emerging middle class. As their economy continues to grow, more and more citizens are entering the middle class.

This will provide a major boost to the economy of China. It is akin to the boom that the United States experienced in the 1950’s.

Related to this is access to the internet. Currently, roughly half of China has access to the internet. And with China having the largest population in the world, this means that there are many people who are yet to experience all that Alibaba has to offer.

Earnings

When it comes to earnings, Alibaba is rock solid. In their most recent earnings report, they reported earnings per share of $1.29 which beat estimates by $0.26. Revenues came in at $8.29 billion, an increase of 61%.