Alibaba going public....

[rsot]

Alibaba files for what may be biggest tech IPO | Reuters

[yankee]

I hear they are claiming to bigger than ebay and amazon combined. That baffles me if true.

[GreenBean]

Originally Posted by yankee

I hear they are claiming to bigger than ebay and amazon combined. That baffles me if true.

Asian market has the numbers.

[Gamefreak]

Originally Posted by yankee

I hear they are claiming to bigger than ebay and amazon combined. That baffles me if true.

they probably are and their net profits are staggering in the billions.

They are certainly bigger than amazon and really most of bays customers are from USA compared that to the market that alibaba caters to and its really no competition

[unkown5454]

Asian market trounces all. That's all that matters. Whether or not they can penetrate other markets and take over has yet to be seen.

It's crazy to think that if you can manage to sell enough ill.egal sh!t on your website before the rest of the world catches up to you, you'll eventually be worth so much money that they just can't stop you. Then you play nice and act like nothing happened and you're in the clear. Good ol' Ali

[GreenBean]

Originally Posted by yankee

I hear they are claiming to bigger than ebay and amazon combined. That baffles me if true.

Not sure if you have checked out the consumerism that exists on Mainland China alone?

The market is there.

That market is being picked at by Alibaba.

They made a corporate choice around about the time the lease of Hong Kong to the British ended.

And that itself was a plan in progress since post WW2 ( by an echelon of people who ended up founding Alibaba).

Both China & Japan had plans to dominate world markets.

Slowly but surely this is happening.

[vogeltron]

Saw a pc on RT Boom Bust about this today. They are saying initial IPO is will value the company at $200 Billion USD.

Alibiba by the Numbers (2013) USD

Annual Active Buyers: 231 Million
Annual Active Sellers : 8 Million
Annual Orders : 11.3 Billion
Paying Customer Relations: 3 Million
Mobile active annual users: 136 Million

Alibaba Financials (2013) USD
Revenue: 5.5 Billion
Net Income: 1.3 Billion
Gross Merchandise Volume: 248 Billion
Total Payment Volume (Alipay): 519 Billion


If they are saying the company will be IPO offered at $200 Billion market cap. $1.3 Billion Net Income/ $248 Billion Merchandise sold = 100x P/E Ratio.

For me even if you add the income from the Subsidary business. It looks like you are still buying a company valued at 50x earnings which is massive considering the sales they already have. Usually when you have a price to earnings book like that it anticipates massive growth. For me I would sit this one out initially.

You never with IPO's. Sometimes they crash like facebook. Sometimes average people like in the UK. Get screwed over by people like Vince Cable who completely botched the valuation of the Royal Mail IPO. To help his crony friend buy and flip at a discount. You never know.

[rsot]

Good stats - the IPO should soar then probably fall as time goes on and the sellers are explored.

Huge amount of clients for sure.

[Sandy D]

Something behind this move.

[rsot]

Why Alibaba's IPO is the end, and beginning, of an era

[vogeltron]

Originally Posted by rsot

Good stats - the IPO should soar then probably fall as time goes on and the sellers are explored.

Huge amount of clients for sure.

Shorting stocks the day after the IPO is usually a short term winner. Almost always they have a sharp pull back.

[rsot]

Whole forum goes in on this and buys Alibaba to control it /done

[Cobra commander]

When is the stock scheduled to open on the market? And what are they saying the IPO share price will be?

[yotano211]

I like this one, its a growth stock.

[rsot]

Originally Posted by Cobra commander

When is the stock scheduled to open on the market? And what are they saying the IPO share price will be?

Hasnt announced full details yet

[vogeltron]

Originally Posted by yotano211

I like this one, its a growth stock.

Personally if it is traded on US exchanges or one of the ones European ones I have access to. I will short a few weeks in. Depends on the IPO. But 100x earnings on a stock that already seems to touch all it customers. No thanks. I will pass on this one.

[rsot]

There will be a huge uptake initially and then likely fade - maybe more so if troubles are seen

[exxomscp]

I never trust IPOs. Chinese have been known to be fickle..

All of you guys have the right idea; might be strong initially, but will fade.

[yotano211]

Like I said, its a growth stock. Read up on Chinese consumerism. Even at 100x, I still like it.

[rsot]

Stifel Hikes Yahoo Target on Hopes Alibaba IPO Will Be Delayed | Fox Business

[yotano211]

Originally Posted by rsot

Stifel Hikes Yahoo Target on Hopes Alibaba IPO Will Be Delayed | Fox Business

I wouldn't accept Yahoo stocks even if they gave me stocks. Yahoo's revenue is declining and have horrible management in place. This sale is just a bonus profit booster that wont last. They need to replace the entire management.

[rsot]

Free stocks are fun