Alibaba--the Chinese e-commerce giant--is expected to make its
stock market debut in the US later this year. Arguably the most
anticipated IPO of 2014 is likely to be one of the largest in US
history, and could even surpass Facebook's IPO.
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Yahoo's results released yesterday have further put the spotlight
on this IPO. Yahoo holds about 24% stake in Alibaba.
What's the reason for this frenzy? Here are some facts on
· Alibaba Group
Holdings' transaction volume in 2013 was
than that of Amazon and eBay combined
· Q4 revenue for
the company jumped 66% year-over-year, and the net income
more than doubled
· 11.11 Shopping
Festival--the one day annual online shopping event organized by
than on all US online retailers on Black Friday and Cyber Monday
· Alibaba handles
80% of all on-line shopping in China, which has a massive growth
· The valuation
of the company could be more than $150 billion
SoftBank Corp. that holds 37% stake in Alibaba is up more than 9%
today and Yahoo is up about 6%. Some of the ETFs that will
hold Alibaba after it goes public are also witnessing increased
interest of late.
While the IPO will likely draw massive investor interest, it does
warrant some caution as many hot technology stocks as well as
some of the recent Chinese IPOs have fallen out of favor in the
past few weeks. In fact, ETFs may be a safer way of investing in
Will you invest in Alibaba IPO and how?