Chinese e-commerce shop Alibaba may soon be bigger.

Alibaba could soon reclaim the title of world's most valuable online retailer.

The company's stock rose nearly 5% to an all-time high on Thursday after the company reported sales and profits for its second quarter that easily topped Wall Street's forecasts.

The company is now worth about $420 billion. That puts its closer to Amazon, which is having a pretty good year as well. It is worth $465 billion, following a 30% pop in its stock this year.

Alibaba is also benefiting from booming demand in its cloud business. Alibaba, like Amazon, hosts online commerce sites for other companies. Revenue from that unit nearly doubled from a year ago.

And Alibaba, under the direction of enigmatic founder Ma, is also moving to make the company more diversified like Amazon.

 It owns the YouTube-like video site Youku Tudou. Even as they dominate online retail, the companies each face growing competition from the likes of Walmart.

Walmart in particular is making a much bigger push for online shoppers with the purchase of Jet.com and several other specialty e-commerce sites.