Much of the news coverage about Alibaba Group Holding Ltd. (NASDAQ: BABA) has been that its market cap has reached the same level as that of Wal-Mart Stores Inc. (NYSE: WMT) — about $247 billion. However, more impressively, the Chinese e-commerce giant could soon be worth more that storied conglomerate General Electric Co. (NYSE: GE), which has a market cap of $260 billion.

GE’s fortunes have eroded since current CEO Jeff Immelt took over in 2001. GE has moved in and out of several businesses. However, its revenue in 2004 was $152 billion. Last year the number was only $145 billion. Net income figures are no better. In 2004, it was $16.6 billion. Last year, it was $13.3 billion.

Despite recent sales stagnation, Walmart’s revenue has grown from $288 billion in 2004 to $476 billion last year. Net income has risen from $10.3 billion to $16.0 billion. Throughout the entire period, margins have been thin.

The GE and Walmart annual results and market cap levels are one more proof of the discount Wall Street gives to dead or dying growth, particularly if it lasts for several years.

Over two years, Facebook Inc. (NASDAQ: FB) made an advance similar to Alibaba’s. The social network’s market value is $210 billion. With its most recent earnings, though, that market cap could fall below $200 billion. It is a ridiculously high number, but at least retreating.

Before Alibaba shares fall, and they will, GE’s management can add to its woes the fact that a Chinese e-commerce company, founded only a few years ago, has passed it, at least as the market sees its value.

ALSO READ: The 20 Most Profitable Companies in the World

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.