Boom: Alibaba surges in huge IPO debut

CNN Money ^ | Septembet 19, 2014 | Matt Egan

[C19fan]

Shares of the Chinese e-commerce giant opened at $92.70. That marks a 36% pop from the $68 price of its record-shattering initial public offering. The first day of trading can be very volatile. Alibaba continued to climb and nearly hit $100 before sinking back down to around $93.

[C19fan]

My belief when a stock IPO pops like this Wall Street messed up and got the price wrong. Actually from their viewpoint they got it right as insiders and special clients just made a ton of easy money at the expense of Alibaba. Alibaba left almost $8 billion on the table and just gave it away. I don't understand why IPOs don't use an auction model. I can think of only Google as using that way to do an IPO.

[Captain Peter Blood]

Alibaba reminds me of AOL using it’s over priced stock buying Time-Warner.
Alibaba has no real assets to it, not like owning a company with real hard assets.
Will be interesting to watch to see what happens. In a real market correction this stock will be going down.

[buckalfa]

"Alibaba has no real assets to it,"

Agreed, no tangible assets. However, they do have a billion or so potential consumers in Asia.

[peyton randolph]

It’s not even stock in Alibaba. It’s an interest in an offshore entity that has a contract with Alibaba. And that entity has a postal box for its headquarter address.

Only a fool would believe the Chinese will honor the terms of the contract.

This IPO is a legal con game.

[PGR88]

to me its peak bubble, and peak China.

EVERYTHING in China exists only at the whim of the Party and Government.

[Buckeye McFrog]

The investor class in this country is STOOOOPID enough to put their money into ChiCom vaporware.

That’s one major reason our economy is in the toilet.

[Moonman62]

Alibaba has no real assets to it, not like owning a company with real hard assets.

...

And people think Conservatives are ignorant knuckle draggers.

[shove_it]

After several orgasmic hours on CNBC interviewing the jubilant CEO of BABA, Jack Ma, people are starting to come to their senses and asking “what is BABA?”. None of these Wall Street geniuses seem to know.

[molson209]

Is the one the Clintons help start ?

[C19fan]

Not sure but it is well known Ma was able to buddy buddy with Communist party bosses and their cleared the way for BABA to become a monopoly in China.

[LeoWindhorse]

Ali Baba was a thief....

[mrsmith]

I hate Alibaba.
When looking for parts I want to deal with a real company.

[shove_it]

Today, being ‘talk like a pirate day’, was perfect for an Ali Baba IPO, seeing as he stole gold from thieves.

[shove_it]

Oh, I forgot “open sesame”.

[catfish1957]

For part of yesterday Alibaba had a net cap larger than Walmart. How insane is that?

[Captain Peter Blood]

Like I said reminds me of AOL, no assets and it's market cap was bigger than most hard asset and bricks and mortar companies and it buys Time-Warner with it's overvalued stack and within a very short time it crashed and burned.
Poor “Ted Turner”, for example, went from being worth several billion to about $1 Billion.
Alibaba is like a and E-Bay but on a larger scale and set up a little different but again has no real assets, what will happen to it in a real economic meltdown?

[catfish1957]

I luckily steered clear of the dotcom debacle back in 2000. I had only one small spinoff position (100 shares or so) of a b2b web based REIT company. It IPO'ed at $2 in '95, reached $150 by '98, and then $0 by '04.

There will also for a lot of these "e" dynasties too. Even Apple. Like I say on investment threads, Apple is only and always 2 bad products away from a 90% correction.

[catfish1957]

Correction.... Final Paragraph... This will also happen to these “e”dyansties too.