James Dennin, Kapitall: Alibaba has an equivalent product for most American tech brands. Could this IPO disrupt US tech giants?
Everyone's talking about the upcoming Alibaba IPO after the company officially announced its filing yesterday. New estimates now suggest that the giant of Chinese tech may unroll the
biggest IPO ever
[Read more from Kapitall: Will the Alibaba IPO live up to its lofty expectations?]
Goldman Sachs (GS)
in 2009. Bigger than
in 2012. Alibaba's filings reveal that it is seeking about $20 billion in its initial offering. That's about 2/3 of the
entire market capitalization
for one of
, Alibaba's biggest stakeholder.
pointed out, that's awkward for Yahoo! as it would suggest that most of its run on the stock-market has been sustained by Alibaba hype. But there are also some caveats:
- Jim Cramer took to Twitter (TWTR) to argue that there's not enough money in the market to sustain a big tech IPO
- That could hurt growth plays as people sell holdings to get a piece of Alibaba
- Some investors worry about key omissions in yesterday's 2000-page filing
Still, it's startling to grasp how big the numbers are. And that's partially because Alibaba doesn't really have a tech-equivalent here in the US, even though many of its services are modeled on American brands.
To give you some idea, we built a list
using this article in Quartz
about the many, many Alibaba brands and their American equivalents.
Because the whole point of the IPO is to generate visibility for Alibaba in the West, US firms could soon face competition in everything from cloud computing, to travel booking, to the obvious: e-commerce.