Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Categories
Tip of the Day

Tip of the Day Invest for the Long-Term

Invest for the Long-Term - Investing is a high-risk proposition unless it is to be done over a long-term. Due to the nature of the industry, there is no...

read entire tip

Recently Added
Other Great Sites

The biggest IPO Ever Alibaba Group


Before 1999, the word Alibaba was just a fairy tale about a guy’s adventure with a group of 40 thieves in “One Thousand and One Nights”, but Jack Ma changed that.  The English teacher from Hangzhou, China started the website as a business to business (B2B) portal to help Chinese manufactures export their products overseas.  It was the perfect timing, since that was at the height of China manufacturing boom that lasted another decade afterward.   Now Alibaba.com features nearly a billion products and is one of the most visited website in the world, and that’s not all, folks.  In 2003, Jack decided to start a consumer to consumer (C2C) platform that can connect people who want to get rid of their junk, similar concept to Ebay, which Taobao was born.  Taobao in Chinese literally means “Filter/Find Treasures”.  As of 2010, Taobao’s revenue was over $60 billion.  In fact, similar to people in United States to refer to search as googling, in China, if someone wants to find a good deal online, they will “Tao” online.  With all this online transactions, Jack started Alipay, similar to Paypal that handles the millions of transactions that goes on.   Wait, but the story doesn’t end there, in 2008, Tmall, a C2C platform as well, was started by Alibaba Group to offer global brands for more affluent consumers in China.  Since then, Alibaba has extended its treasure hunt to social networking such as Laiwang, similar to Tencen’ts (QQ) WeChat, media such as substantial stake in ChinaVision Media Group and Youku Tudou (similar to Youtube).  

Alibaba HQ

So you might have a few questions on this Initial Public Offering (IPO)of Alibaba that’s supposed to be available to U.S. market this fall.  Let me try my best to answer them.

Why did Alibaba  filed the IPO in U.S. market.  

Well, mainly for corporate structuring reason.  Jack and his team want control of the board but Hong Kong and Chinese stock exchanges won’t allow a minority shareholder to have control of the board, but U.S. market allows that, e.g. similar to how Facebook is structured.  

How big is Alibaba really?

Let’s put it this way, Alibaba makes more money than Amazon and Ebay combine.

Who would profit most right off the bat from Alibaba IPO?

Well the early investors such as Softbank and Yahoo with each owns more than 20% of the company, Jack Ma and his earliest followers, and the big underwriters investment banks if the IPO was a success

Should I buy into the Alibaba IPO?

In my humble opinion, I think Alibaba has a bright future ahead of itself simply on few fronts: it is ahead of pack in B2B and C2C business; It has vertical control from source of manufacture, consumer, to the popular payment system Alipay, and it’s branching out to other areas so it’s growing.  Millions of more Chinese consumers are coming online every year so I think Alibaba hasn’t reach its full potential yet;  Under leadership of Jack Ma, it has a great management team with proven track record.  The only thing I’m unsure of is the price of the IPO, depending on the demand of the IPO which I suspect will be very high, it might be a little pricey to own, we shall see.

What are the risks?

With any investment, there are always risks.  Remember, Alibaba is operating in People Republic of China, a communist party state, so if the company pisses off the party for any reason, then the company could be in  trouble.  Alibaba also has fierce competitions in all areas of its business.  Another risk might be loss of Jack Ma, he has been the corner stone of the company since the beginning.  

If you have any other question, please don’t hesitate to contact the team or comment below.


Discuss It!
1 2 3 4 >

SEO Strategies said:

If you are doing business to business sales and marketing, you need to understand the power of SEO and the strategies that can take your business to the next level. Finding great SEO strategies is so important to getting new business.

heroes of the storm beta key generator hack said:

i am generate the beta key code for complete my level number56 for heroes of the storm and make more hack and cheat are easily accessible.

cash advances jackson-MS said:

The credit supplier holds the title to the vehicle and not the vehicle itself. The borrower in like way has the opportunity to utilize the vehicle in the way he picks, if tries are made never-endingly to keep the vehicle in amazing condition.

title loans said:

The arrangement of securing guide through title credits is the same as exchange advances. Borrowers must be watchful for advancement specialists who charge superfluously high rates of side hobby. One must take title credits just from the authorization banks why ought to admitted offer these advances.

jungle heat hack said:

I bought a lot of things in Amazon but now I change to Alibaba and Ebay

payday loan newport_news said:

I likewise oblige you to comprehend that the uproot it letter can be utilized for any kind of duty accumulating and not simply payday credits. It is fundamental to know your rights and you can discover them out online at the organization exchange commission's website page where you can get a few answers concerning the sensible duty get-together act. You will recognize what banks can and can't do concerning the accumulating of your responsibilities and how to stop extremely formed and upsetting conduct.

auto title loans said:

The borrower may be asked for that hand over the vehicle at a predefined date and time, as necessities be issuing him an opportunity to remove his inclinations from the auto, that are not a touch of the auto guaranteed.

pay someone to do my essay said:

These are really good ideas that you have added here totally outstanding and perfect one.

write my assignments said:

Wonderful location i have never visit this place when i start summer vacation i will be defiantly visit this place.

window sticker printing said:

Excellently written article, if only all bloggers offered the same level of content as you, the internet would be a much better place. Really great post, Thank you for sharing this knowledge.

homework help services said:

I really cherished these lines living in a cash free world. Yes we have made this standards and lead into these circumstances and we can ready to annul all these and make a just took the ribbon off new world.

venus factor review said:

I curious more interest in some of them hope you will give more information on this topics in your next articles.

LEGO Case Solution said:

This site and the resources you provide is really nice keep it up.

6 minutes workout said:

I feel delighted to read such a good post, I would like to thank the Author for this marvelous efforts. This post is good in regards of both knowledge as well as

cruise control plan said:

This is a superb post I seen because of offer it. It is truly what I needed to see trust in future you will proceed for imparting such a magnificent post.

visual impact muscle building program said:

Really great post. I simply unearthed your site and needed to say that I have truly appreciated perusing your blog entries. Any way Iâll be subscribing to your food and I trust you post again soon.

weight destroyer program plan said:

Great job here. I really enjoyed what you had to say. Keep going because you definitely bring a new voice to this subject. Not many people would say what you've said and still make it interesting.

XM Satellite Radio Case Solution said:

Such a nice post, keep up the fantastic work <a href="http://www.thecasesolutions.com/xm-satellite-radio-a-11563">XM Satellite Radio Case Solution</a>

essay writing service said:

this is really great,unique and very informative post, i like it. thanks

MCI Takeover Battle: Verizon Versus Qwest Case Solution said:

My friend recommended this blog and he was totally right keep up the fantastic work. <a href="http://www.thecasesolutions.com/mci-takeover-battle-verizon-versus-qwest-9198">MCI Takeover Battle: Verizon Versus Qwest Case Solution</a>

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Municipal Investment Trust

Municipal Investment Trust - Municipal Investment Trust is the entities that hold a stake in the numerous municipal bonds and then sell share to the public that represent an interest in those bonds. When the municipal bonds then pay off compensation or mature, the trust passes the income on to...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com