Alibaba has announced that their stocks will be trade publicly on the 19th of September 2014 on the New York Stock Exchange.
Alibaba is currently being hyped on the financial markets. Today 8th September 2014 the company's roadshow has started, to get investors interested to buying their stocks.
Is Alibaba worth buying?
What kind of company is Alibaba?
Before we can determine of this company is worth buying or not we need to understand their businessmodel is and how are they executing it.
The Economist described Alibaba as one of the world greatest online Bazaar ( source : http://econ.st/1ArRclO).
Almost every transaction that has been made online in China's e-commerce , Alibaba gets a % of that transaction value.
Why do people wants to buy shares of Alibaba?
In the financial world almost everybody wants to buy shares of Ailbaba.
Most analyst are saying that the e-commerce of China can grow a lot bigger. According to them China's e-commerce growth hasn't reach their full growth potential yet. Since Alibaba is positioned so well in China, forecasters are expecting that Alibaba is going to earn a lot of money in the future.
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Invest or trading?
I think Alibaba's shares are good for the long term investment. I can see the company growing. I was a bit moved after reading the letter that Jack Ma wrote to his investors. You can read the letter by clicking on here. Or just go Facebook.
For trading i would recommend not to trade the shares on the first day as it very volatile. It would be very difficult to make a good profit from it.
A few things that you might not know of Alibaba
1. A Chinese English teacher founded this company
2. Alibaba revenue is smaller then the revenue of Amazone. But the profit of Alibaba is bigger then that of Amazone!
3. After the IPO Jack Ma will be probably the richest man in China
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Till next time have a good trading week!