This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Here's the Scoop on the Alibaba IPO

NEW YORK (TheStreet) -- The moment investors have been waiting for has finally arrived. Alibaba has filed for an IPO.

Alibaba is the largest player in the Chinese e-commerce market and has been growing at an unbelievable rate. The company is often described as a juggernaut combination of Amazon.com (AMZN), eBay (EBAY), Groupon (GRPN), and PayPal all smashed into one company. There have been some fears in recent months of an economic slowdown in China, but the Internet economy in the world's most populous country has been booming.

According to figures from the non-profit China Internet Network Information Center, as of the end of December some 618 million Chinese citizens are now on the Web representing a 45.8% penetration rate. For a quick point of reference this is nearly double the U.S. population of 319 million while their Internet penetration rate is only about half of ours (81% as of 2012) which still leaves plenty of room for expansion. In 2013 the Internet user base in China grew by 9.5% compared to the previous year while the user base in the U.S. grew by only 4% between 2011 and 2012.

image

The growing population that's spending time on the web in China is also spending an increasing amount of money online. This is evidenced by the growth of companies like vacation booking Web site Ctrip.com (CTRP - Get Report), search engine Baidu (BIDU), automotive marketing Web site BitAuto (BITA), and media and entertainment holding company Tencent (TCEHY).

Last year nearly $248 billion worth of merchandise was sold across Alibaba primarily through its Taobao and Tmall Web sites. Tmall is a platform for larger and more established companies like Apple (AAPL) while Taobao is a massive online bazaar featuring over 8 million vendors. From the nearly quarter trillion dollars of goods sold over Alibaba e-commerce Web sites, the company brought in $5.66 billion dollars in revenue within China alone in the 9 month period that ended Dec. 31. The bulk of this revenue comes from fees, commissions, and marketing services such as display ads. According to the initial prospectus from Alibaba released on Tuesday, Taobao alone receives 100 million visits per day.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CTRP $70.99 -2.24%
AAPL $126.48 0.84%
FB $87.35 1.80%
GOOG $521.98 0.28%
TSLA $279.85 4.30%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs