Should American firms be worried about new Alibaba backed competitors?

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

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. 

Do you think US firms could be disrupted by the Alibaba IPO? Use the list below to begin your analysis and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

 

1. eBay Inc. ( EBAY): Provides online marketplaces for the sale of goods and services, as well as other online commerce, platforms, and online payment solutions to individuals and businesses in the United States and internationally. Market cap at $63.34B, most recent closing price at $50.95.

Ali Pay processes online payments like PayPal and Taobao is a P2P e-commerce site that lets you auction your belongings to the highest bidder. 

 

2. Amazon.com Inc. ( AMZN): Operates as an online retailer in North America and internationally. Market cap at $133.70B, most recent closing price at $297.38.

Aliyun offers cloud services like Amazon Web services. Tmall is Alibaba's largest e-commerce wing. 

 

3. ING Groep NV ( ING): Provides banking, investment, life insurance, and retirement services worldwide. Market cap at $54.02B, most recent closing price at $14.14.

Yu'e Bao sells money market funds not unlike ING Direct. 

 

4. J. C. Penney Company, Inc. ( JCP): Operates department stores in the United States and Puerto Rico. Market cap at $2.61B, most recent closing price at $8.09.

InTime are discount retail outlets not unlike JC Penney. 

 

5. Groupon, Inc. ( GRPN): Operates online local commerce marketplaces that connect merchants to consumers by offering goods and services at a discount worldwide. Market cap at $5.18B, most recent closing price at $7.78.

Juhuansuan offers discounts for people who buy as a group. 

 

6. Facebook, Inc. ( FB): Operates as a social networking company worldwide. Market cap at $145.52B, most recent closing price at $58.53.

Weibo is Alibaba's microblogging site, and Laiwang is its mobile messaging site. 

 

7. Graham Holdings Company Common ( GHC): A diversified education and media company whose principal operations include educational services, television broadcasting, cable systems and online, print and local TV news. Market cap at $5.07B, most recent closing price at $668.13.

Alibaba has a robust education segment that could compete with Kaplan, including Tutor Group and an online business school. 

 

8. Orbitz Worldwide, Inc. ( OWW): Operates as an online travel company worldwide. Market cap at $788.76M, most recent closing price at $7.18.

Taobao travel does online travel booking. 

(List compiled by James Dennin based on this article from Quartz. Monthly returns sourced from Zacks Investment Research.)

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