VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 0 CENTS
Monday, December 29, 2025
Alibaba Group Holding Limited
9988.HK · The Stock Exchange of Hong Kong Limited
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
Alibaba is a Cayman Islands holding company with primary operations in China, built around large-scale commerce platforms and a growing cloud/AI infrastructure business. Taobao and Tmall Group is the core marketplace engine, where two-sided network effects and a broad ecosystem of merchants and service providers support monetization, though competition and regulation limit pricing power. Cloud Intelligence is positioned as the second strategic pillar, combining hyperscale capex with leading share in China cloud infrastructure but facing state-backed and price-aggressive rivals. Cainiao logistics and Local Services (Ele.me, Amap) extend the commerce ecosystem yet operate in highly competitive, subsidy-sensitive markets. International commerce and media/other initiatives add optionality but generally have weaker structural moats.
Primary segment
Taobao and Tmall Group
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
7 segments · 5 tags
Updated 2025-12-29
Segments
Taobao and Tmall Group
China online retail marketplaces & merchant services (Taobao, Tmall, 1688)
Revenue
41%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Alibaba International Digital Commerce Group
Global e-commerce marketplaces (cross-border + local) (AliExpress, Lazada, Trendyol, Daraz, Alibaba.com)
Revenue
12.1%
Structure
Competitive
Pricing
weak
Share
—
Peers
Cloud Intelligence Group (Alibaba Cloud)
Public cloud infrastructure & platform services in China (IaaS/PaaS; AI cloud)
Revenue
10.8%
Structure
Oligopoly
Pricing
moderate
Share
33%-35% (reported)
Peers
Cainiao Smart Logistics Network Limited
China & cross-border logistics network and fulfillment services (Cainiao)
Revenue
9.2%
Structure
Competitive
Pricing
weak
Share
—
Peers
Local Services Group
China on-demand local services & mapping (Ele.me delivery, Amap)
Revenue
6.1%
Structure
Oligopoly
Pricing
weak
Share
—
Peers
Digital Media and Entertainment Group
China online video, film production/distribution, and live events ticketing
Revenue
2%
Structure
Competitive
Pricing
weak
Share
—
Peers
All Others
Assorted retail, health, enterprise and other initiatives (e.g., Freshippo, Alibaba Health, DingTalk)
Revenue
18.8%
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Taobao and Tmall Group
China online retail marketplaces & merchant services (Taobao, Tmall, 1688)
Revenue_share is normalized across FY2025 segment revenues before inter-segment eliminations; source: FY2025 results announcement.
Two Sided Network
Network
Two Sided Network
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Large, liquid marketplace ecosystem attracts both merchants and consumers; more selection and traffic reinforce each other, supporting monetization via ads/merchant services.
Erosion risks
- Multi-homing by merchants and consumers across multiple platforms
- Aggressive subsidization and social-commerce competition (PDD, Douyin, JD)
- Regulatory scrutiny on platform conduct and fees
Leading indicators
- Annual active consumers / purchasing frequency on Taobao/Tmall
- Merchant count and paid merchant-service adoption
- Take rate (customer management revenue divided by GMV) trend
Counterarguments
- Network effects are weaker when both sides multi-home
- Short-form video and content-driven commerce can reroute demand away from marketplaces
Ecosystem Complements
Network
Ecosystem Complements
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 2 evidence
Adjacent Alibaba services (logistics, cloud, local delivery, marketing tools) can deepen merchant tool adoption and user engagement beyond the core marketplace.
Erosion risks
- Breakdown of cross-segment coordination due to organizational restructuring
- Rivals replicate merchant tooling + logistics partnerships
- Negative user/merchant sentiment from ads load or fee increases
Leading indicators
- Cross-selling penetration of value-added merchant services
- User retention and membership growth (e.g., loyalty programs)
- Logistics/on-demand delivery attach rate to marketplace orders
Counterarguments
- Ecosystem breadth can add complexity and slower execution versus focused competitors
- Some complements (logistics, delivery) have limited differentiation in a price-war environment
Alibaba International Digital Commerce Group
Global e-commerce marketplaces (cross-border + local) (AliExpress, Lazada, Trendyol, Daraz, Alibaba.com)
Revenue_share is normalized across FY2025 segment revenues before inter-segment eliminations; source: FY2025 results announcement.
Two Sided Network
Network
Two Sided Network
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Marketplace liquidity effects exist within each geography (more merchants -> more selection; more buyers -> better conversion), but are weaker due to fragmentation and multi-homing.
Erosion risks
- Intense price competition (Temu/Shein/Amazon/Shopee and local incumbents)
- Cross-border regulatory/tariff changes and shipping disruption
- Customer acquisition costs rise as channels saturate
Leading indicators
- Order growth and repeat-purchase rates by platform
- Unit economics and marketing efficiency (CAC payback)
- Cross-border delivery times and refund/chargeback rates
Counterarguments
- Consumers can easily multi-home across marketplaces
- Local incumbents often have stronger logistics density and brand trust
Cloud Intelligence Group (Alibaba Cloud)
Public cloud infrastructure & platform services in China (IaaS/PaaS; AI cloud)
Revenue_share is normalized across FY2025 segment revenues before inter-segment eliminations; source: FY2025 results announcement.
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 3 evidence
Hyperscale capex + engineering scale support competitive unit costs and rapid rollout of AI infrastructure; leading share in China cloud infrastructure reinforces supplier/partner gravity.
Erosion risks
- State-backed competition and procurement preferences (e.g., Huawei Cloud)
- GPU supply constraints and export controls affecting AI capacity
- Price competition compressing margins
Leading indicators
- Public cloud revenue growth excluding Alibaba-consolidated subsidiaries
- Capex intensity and new region/data center launches
- AI-related product revenue growth and GPU utilization
Counterarguments
- Enterprise customers can adopt multi-cloud to reduce lock-in
- Scale advantage may be offset by mandated localization/procurement rules
Switching Costs General
Demand
Switching Costs General
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Migration of production workloads and adjacent platform services (data, AI agents/toolchains) can create operational friction and re-architecture costs, improving retention for sticky customers.
Erosion risks
- Standardization on Kubernetes/open-source tooling reduces switching costs
- Competitive discounts to win migrations
Leading indicators
- Net revenue retention (if disclosed) or cohort expansion rates
- Share of workloads using proprietary AI/agent platforms
- Churn among large enterprise accounts
Counterarguments
- Workload portability is improving via containers and open standards
- Some enterprises prioritize vendor diversification over deep platform lock-in
Cainiao Smart Logistics Network Limited
China & cross-border logistics network and fulfillment services (Cainiao)
Revenue_share is normalized across FY2025 segment revenues before inter-segment eliminations; source: FY2025 results announcement.
Supply Chain Control
Supply
Supply Chain Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Control over key logistics nodes and orchestration of partner capabilities can improve reliability and efficiency versus purely asset-light forwarding.
Erosion risks
- Logistics services commoditization and price pressure
- Large e-commerce platforms internalize logistics capabilities
- Regulatory changes in cross-border trade and customs
Leading indicators
- On-time delivery and loss/damage rates
- Cross-border delivery time and cost per parcel
- Share of volume handled through controlled nodes vs partners
Counterarguments
- Major rivals (JD Logistics, SF) also have dense networks and strong service levels
- Customer loyalty can be low when price differences widen
Local Services Group
China on-demand local services & mapping (Ele.me delivery, Amap)
Revenue_share is normalized across FY2025 segment revenues before inter-segment eliminations; source: FY2025 results announcement.
Two Sided Network
Network
Two Sided Network
Strength: 2/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Delivery platforms benefit from local density (users, merchants, couriers), but the segment operates in a subsidy-heavy, winner-take-most arena where Alibaba is not the leader.
Erosion risks
- Prolonged subsidy wars compress unit economics
- Entrants expand aggressively (JD and others)
- Regulatory changes in gig work and delivery pricing
Leading indicators
- Daily order volume and frequency
- Contribution margin per order / unit economics
- Merchant supply growth in top-tier cities
Counterarguments
- Local network effects favor the incumbent with highest density (often Meituan)
- Consumers multi-home; switching is easy when subsidies move
Digital Media and Entertainment Group
China online video, film production/distribution, and live events ticketing
Revenue_share is normalized across FY2025 segment revenues before inter-segment eliminations; source: FY2025 results announcement.
Brand Trust
Demand
Brand Trust
Strength: 1/5 · Durability: fragile · Confidence: 2/5 · 1 evidence
Some brand recognition via Youku/Alibaba Pictures/Damai, but content and audience attention are highly contestable and depend on ongoing spend.
Erosion risks
- Rising content costs and hit-driven economics
- Platform churn driven by exclusive content cycles
- Regulatory intervention in entertainment content
Leading indicators
- Paid subscriber trends (if disclosed) and ad load
- Content ROI and production slate efficiency
- Time spent / MAU trends vs peers
Counterarguments
- Brand is insufficient without exclusive content; competitors can outspend or outbid for rights
All Others
Assorted retail, health, enterprise and other initiatives (e.g., Freshippo, Alibaba Health, DingTalk)
Revenue_share is normalized across FY2025 segment revenues before inter-segment eliminations; source: FY2025 results announcement.
Ecosystem Complements
Network
Ecosystem Complements
Strength: 2/5 · Durability: medium · Confidence: 2/5 · 1 evidence
Portfolio businesses can leverage Alibaba's distribution, data, and merchant relationships, but many compete in markets with low structural barriers.
Erosion risks
- Many sub-businesses face stronger specialists
- Execution dilution across too many initiatives
Leading indicators
- Time to profitability or narrowing losses by sub-business
- Customer/merchant overlap with core commerce
- Spin-off/divestiture activity
Counterarguments
- Conglomerate structure can obscure accountability and slow exits from underperforming units
Evidence
An ecosystem has developed around the Company's platforms and businesses that consists of consumers, merchants, brands and retailers.
Direct description of a multi-sided ecosystem (core mechanism behind network effects).
Taobao and Tmall Group consists of China's leading e-commerce platform, operated via Taobao and Tmall.
Supports scale/positioning that helps sustain liquidity on both sides.
The Company has built a diverse ecosystem across multiple businesses.
Supports the claim that commerce is embedded in a broader set of complementary businesses.
The overall take rate increased to 4.36% in fiscal year 2025 from 3.99% in fiscal year 2024.
Illustrates monetization improvements likely enabled by merchant tools and ecosystem services.
International commerce retail business includes Lazada, AliExpress, Trendyol and Daraz.
Defines the multi-marketplace footprint where two-sided effects apply locally.
Showing 5 of 17 sources.
Risks & Indicators
Erosion risks
- Multi-homing by merchants and consumers across multiple platforms
- Aggressive subsidization and social-commerce competition (PDD, Douyin, JD)
- Regulatory scrutiny on platform conduct and fees
- Breakdown of cross-segment coordination due to organizational restructuring
- Rivals replicate merchant tooling + logistics partnerships
- Negative user/merchant sentiment from ads load or fee increases
Leading indicators
- Annual active consumers / purchasing frequency on Taobao/Tmall
- Merchant count and paid merchant-service adoption
- Take rate (customer management revenue divided by GMV) trend
- Cross-selling penetration of value-added merchant services
- User retention and membership growth (e.g., loyalty programs)
- Logistics/on-demand delivery attach rate to marketplace orders
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.