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?]
Bigger than Goldman Sachs (GS) in 2009. Bigger than Facebook (FB) 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 Yahoo! (YHOO), Alibaba's biggest stakeholder.As CNET 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