Around this time of year, we talk about Amazon.com Inc. (Nasdaq: AMZN) a lot. Especially this year, when people are more likely than ever to have Christmas presents delivered to their door.
But what about fellow e-commerce giant, Alibaba Holdings Group Ltd – ADR (NYSE: BABA)?
It’s hard to mention one without the other. Amazon is the worldwide leader in e-commerce, and Alibaba has a hold of the enormous Chinese market.
But when it comes to stocks, who’s your pick in Amazon vs. Alibaba?
This is a classic trade in my Money Links program, and now I have a perfect opportunity to revisit it.
Amazon vs. Alibaba Under a New President
There’s been a lot of talk about the clean energy sector under our new president, and how that’s where your money should go. But what can we expect in foreign relations?
It’s no secret that U.S.-China relations under President Donald Trump were not anything pleasant. As WealthPress Head Trader Roger Scott and I discussed yesterday, many people expect an improvement under President-elect Joe Biden, Jr.
That could open the door for Alibaba to gain some serious attention in the stock market — especially given that China has had one of the best economies throughout COVID-19.
Amazon, on the other hand, is always a consistent performer and is one of the biggest companies in the world.
The strategy here is one of my favorites. It’s something I discussed about a month ago: You short one stock, and buy the one that’s eating its lunch.
So who wins the battle of Amazon vs. Alibaba? Find out in my latest “Buy It and Burn It” segment below.
P.S. Record volatility has some investors acting like gamblers with their retirement funds. Chasing lost money… panicking and buying… It’s sad, guys.
Casinos can be fun, but leave the gambling mentality at the door when you’re trading.