Anyone who is interested in making money in the stock market knows that the just-completed Alibaba IPO was the most successful in the history of initial public offerings. The eCommerce company is now worth more than a quarter of a trillion dollars. As time goes by, market analysts expect the value of the company to increase significantly. If you did not know, here is Alibabas goal: supplant eBay, Amazon and PayPal.

The Market as it Is

Currently, Amazon and eBay dominate the online business market. The firms operate primarily in North America and Europe. While these two eCommerce sites provide online shoppers with a variety of payment options, the main one is PayPal. On the other hand, Alibaba, the Chinese B2B eCommerce firm, dominates the Chinese market. While Chinese manufacturers use the platform to export goods to other parts of the world, the company derives almost 100% of its revenue from within China. In other words, Amazon and eBay dominate the developed world, while Alibaba has the lions share of the market in the worlds most populous country. Since there is still room for growth in China, Alibabas revenue is also poised to grow.

The IPO Magic

Alibabas IPO created instant billionaires. It also established Alibaba as the largest eCommerce company. If the companys place in the international market was in doubt, the IPO validated it. Aside from its revenue, Alibabas IPO success can also be attributed to the fact that the firms management plans to roll out an ambitious plan that will see it replace Amazon and eBay as well as PayPal, the worlds leading online payment solutions company. While that might be a tall order, it certainly provides stock traders with something to speculate on.

Trading Alibaba Stocks

Alibaba is trading with the acronym BABA. Amazon has the code, AMZN, while eBay is quoted as EBAY in most stock exchanges and brokerage firms. Whether you are a stock trader, income-oriented investor, growth investor, binary options trader or traditional options trader, you can get decent returns from speculating on BABA stock as well as EBAY and AMZN. The uncertainty and high expectations of both investors and stock traders creates the perfect asset to speculate on as prices are likely to be highly volatile in the near future.

The Challenge

While it is possible for Alibaba to replace PayPal, Amazon and eBay, the chances are slim; at least according to some market analysts. This is because Alibaba caters for the needs of different types of consumers. Alibaba would have to overhaul the way it does business to grab some market share from these firms. In addition to that, Amazon, PayPal and eBay already have satisfied customers who look at these firms as being more American than Alibaba. Alibabas goal: supplant eBay, Amazon and PayPal, might be fulfilled, but it is going to take time as well as the adoption of a different approach to business.