Don Luskin is Skeptical Of Alibaba Group Holding Ltd (BABA)

If Alibaba Group Holding Ltd (NYSE:BABA) aspires to become dominant in the U.S., it is about a decade too late to penetrate this market, Donald Luskin of Trend Macrolytics said in a discussion on CNBC. Furthermore, the executive said that it’s a bit too early to judge whether the company is going to be strong for the long run.

 “[It’s] something like a decade too late. I think America is really very well-served by Amazon.com and other e-retailers. I think it would be as difficult for Amazon to take over the China space as it would be for Alibaba to take over the American space,” said Luskin.

Nonetheless, he noted that Alibaba Group Holding Ltd (NYSE:BABA) is “a great company” but it’s just not American. It’s a “Chinese company,” Luskin added, and urged his colleagues watching the tech giant to not pretend like it is going to “take over the universe”.

Meanwhile, Henry Guo, Senior Research Analyst at JG Capital, said that Alibaba Group Holding Ltd (NYSE:BABA) will have a hard time becoming dominant in the United States. International penetration will not be straightforward for the company for the next couple of years, he said.

He said that as the Chinese giant prepares for an all-out assault in other markets like the U.S., cross-border trading will be its leading strategy. Nonetheless, it is noteworthy that Guo has an “Overweight” rating on the company’s stock. He also raised his price target for the stock from $110 to $120.

According to Guo, what stood out in the recent Alibaba Group Holding Ltd (NYSE:BABA) quarterly performance report, its first ever after becoming listed in the U.S., is its growth gross merchandize value and its mobile monetization figure revealing that mobile contributed 29% of the company’s revenue for the third quarter of 20114, an increase from 19% in the previous quarter.

Nonetheless, Luskin cautioned that it may also be too early to judge Alibaba. He said that it has only been a public company for the last six weeks, adding that people should really judge Alibaba a year from now.

Asked whether he would pick Alibaba over Amazon.com, Inc. (NASDAQ:AMZN), he said that if people believe that the global economy is in a bull market helped by decreasing oil prices, he would be long Alibaba and Amazon.

Alibaba Group Holding Ltd (NYSE:BABA) made its debut at the New York Stock Exchange on September 18. Raking in $25 billion for the world’s largest electronic commerce company, the IPO is the biggest the world has seen yet.