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Amazon vs Alibaba: Holiday Spending Cools as US–China Consumer Patterns Diverge

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Amazon vs Alibaba: Holiday Spending Cools as US–China Consumer Patterns Diverge

The 2025 holiday season revealed divergent consumer behavior between the US and China. US retail sales grew 2.9-3.4% with consumers exercising budget discipline and increased Buy Now, Pay Later usage. China's e-commerce platforms engaged in aggressive discounting to maintain volume amid weak consumer confidence, with the sector experiencing over $4 billion in cash burn from price competition. This split reflects Amazon's stable but cautious US market versus Alibaba's discount-driven strategy in China.

Insights
DB   neutral

Mentioned as a conference host with no specific performance indicators


AMZN   positive

Amazon benefits from stable US consumer spending with online sales growing 5.3% YoY. The company operates in a market with predictable cash generation and less aggressive price competition compared to China, positioning it favorably for margin protection and sustainable growth.