Alibaba IPO is a great investmentAlibaba.com which hit the Hong Kong Stock Exchange on Tuesday, Nov 6, had a large success with an increase over its initial offering price. The company is a spin off from Alibaba Group, the company that owns Taobao.com, Alipay and Yahoo China and is 40% owned by Yahoo. As of 3:40pm – 2:40am EST the trading price is at HK $39.50 ($5.09). I think an investment in this IPO would make sense for the long term and here’s why.Alibaba is a B2B e-commerce company in China. According to iResearch, (China Internet Research Center), Alibaba is the largest B2B company in China for the year 2006 based on user registration and e-commerce user share. Alibaba operations take place in two markets, the China market and the international market. These are www.alibaba.com.cn and www.alibaba.com, respectively. In their S1 form, the company claims to operate one of the top trafficked websites in the world according to Alexa.com data for 2007. The core of the business is “Suppliers and buyers come to our marketplaces to establish their presence on the Internet, identify potential trading partners and interact with each other to conduct business online. For many suppliers wishing to market products and services through online channels, their listings on our marketplaces are their only presence on the Internet.” This is perhaps true today, but leaves room for change. However, ...
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