Name: What is Alibaba?
Uploaded: 2014-09-18
Duration: 1 min 40 s
Description: What is Alibaba?

Everyone loves Alibaba because it is it is the key to unlocking the Chinese consumer market. People like to say Alibaba is ebay mixed with Amazon, mixed with Etsy, mixed with Paypal. They're in a bunch of businesses, and so you can't really compare the to one business and part of it is because they're bigger than all of these American e- commerce giants combined. Its potentially the biggest tech IPO of all time. Time. So it's got Wall Street very, very excited. It's got the institutions who buy shares through Wall Street really, really excited. They have a business where businesses sell to other businesses. They have a business for consumers, sell to consumers. They have a business in which they process mobile payments, Alipay, that sits right on the transaction. So Alibaba seems to be everywhere that money is transacted. In China. One of the really interesting challenges that Alibaba's gonna face is making itself understood and accepted by the American market. Alibaba might raise as much as $ 24 billion in its IPO. $ 24 billion might sound like a lotta money, especially for an IPO, but this is a mature company selling $ 300 billion worth of stuff on its website each. A year. This is a really, really, risky stock to get into. You're starting off at a market cap of $ 163 billion dollars. You're going to want to get at least ten percent a year in gains. So, if you just go up by ten percent a year, you've got to be at around. Half a trillion dollars in ten years, and this company's gonna be earning 25 to 27 billion a year, and only two companies on the Fortune 500 list make that kind of money, and only one company has a market cap over half a trillion, and that's Apple.