Amazon.com, Inc. (NASDAQ:AMZN) isn’t the most valued online retailer now, that position was taken just recently by Alibaba. In the stock markets, Amazon hasn’t been doing well either, having a lower performance than many competitors. This year, the company has poster 18% tumble in the stock market.

The online retailer has been undergoing several challenges. The company’s activities in Germany were recently disrupted following a strike by employees who felt that they were being paid lower than their counterparts in similar positions in other companies. The all-time higher IPO achieved by Alibaba, a real Amazon.com, Inc. (NASDAQ:AMZN) competitor, is also a reason for the company to rethink its activities.

Alibaba is a real threat to Amazon.com, Inc. (NASDAQ:AMZN) when it comes to international expansion since Alibaba has achieved a new financial stature that provides the company with the impetus for higher growth. And Alibaba’s growth has been about 33% every year.

Moreover, Amazon.com, Inc. (NASDAQ:AMZN) has been facing complaints from investors who feel that the company is shortchanging them by taking 56% of the company’s income and only leaving them with 12%.

In an analysis on CNBC’s Options Action traders show, the company isn’t having a good run in the market, but could be a good one in 5 years compared to the stocks such as Ross, Kohl’s, and Foot Locker, that are doing better than Amazon.com, Inc. (NASDAQ:AMZN) right now. The company has growth potential, and could rise above the competitors.

News came out recently that Amazon.com, Inc. (NASDAQ:AMZN) is testing a smart home one button device in Silicon Valley; a device that will enable users to order for products by the click of a single button. The company is keen on expanding its hardware production activities. A recent report indicated that the company will be expanding its Lab126 division in Silicon Valley, the lab the produced the Kindle.

As a long term investment, the company could be a good wager for investors.

This article has been written by Victor Ochieng.

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