Alibaba Group Holding Ltd (NYSE:BABA) has decided to invest around $200 million in the ephemeral messaging service Snapchat. This is a potential threat to Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN). Alibaba Group Holding Ltd (NYSE:BABA), the e-commerce behemoth is tapping into multiple areas, ranging from social media, entertainment, streaming and phones. Facebook Inc (NASDAQ:FB) has an established customer base. Twitter is struggling with its customer growth. Snapchat is the only company which could give tough time to the social media giant.
Alibaba Group Holding Ltd (NYSE:BABA) and Amazon are also competing with each other in a variety of platforms. While there is no match to Amazon.com, Inc. (NASDAQ:AMZN) in the ecommerce business, Alibaba can take its time and invest heavily in social media, physical stores and mobile business to beat Amazon.com, Inc. (NASDAQ:AMZN).
An article on Bloomberg quoted a source who thinks that Alibaba Group Holding Ltd (NYSE:BABA) has massive plans to expand its operations. Amazon.com, Inc. (NASDAQ:AMZN)’s is currently focusing on its delivery business whereas Alibaba Group Holding Ltd (NYSE:BABA) is more tilted towards social media and tech business. Snapchat’s young CEO Evan Spiegel is on a funding spree these days, but experts think that the latest Alibaba Group Holding Ltd (NYSE:BABA) investment is separate from this campaign and the Chinese tech giant has moved forward and initiated this step in order to take edge on Amazon.com, Inc. (NASDAQ:AMZN).
Facebook Inc (NASDAQ:FB) has an established ads business, traffic and revenue stream. Amazon.com, Inc. (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB) feel no threat from Snapchat or Alibaba Group Holding Ltd (NYSE:BABA), but the competition can heat up in the coming months. Alibaba Group Holding Ltd (NYSE:BABA) invested in Snapchat after its high, impressive $15 billion valuation.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).
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