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All Eyes on Alibaba Coming IPO

  • Forbes, Thursday, September 18, 2014 1:20 PM

My recommendation on BABA is to buy at $80 or less in the aftermarket, unless you are lucky enough to buy at the IPO price. I award Alibaba a premium multiple for its dominant position in the largest global marketplace. It has created a unique ecosystem as an ecommerce enabler, positioned to benefit from faster growth rates in e-commerce and mobile commerce in China. Alibaba benefits from the rising spending power of Chinese consumers. China’s real consumption in 2013 was 35.8% of total GDP, which is a rate that is significantly lower than that of other countries, such as the United States, which had a consumption penetration rate of 67.1% in 2013, according to Euromonitor International



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