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Invest In Alibaba Wisely With Stock Social Trading Network eToro

alibabaRecent IPO of the Asian e-commerce giant Alibaba is considered by many financial experts to be the biggest IPO in history.

Alibaba who?

Unless you’ve lived in China, this may be the first time you’ve heard about Alibaba, but this online retail monster has been around since 1998, only 4 years less than Amazon, and 3 years less than eBay.

Alibaba’s main claim to fame is its ownership of the Alibaba business-to-business trading platform, which deals in wholesale and specialized items. That means that unlike other online retail sites, such as Amazon or eBay, on Alibaba you can buy pretty much ANYTHING you can possibly want. Got a hankering for an oil tanker? Alibaba’s got you covered. Thinking about replacing your old car with a Boeing 737-800? If you’ve got the cash, Alibaba’s got the plane.

Recently, Alibaba has started captivating the attention of American and European startups. These new businesses, such as this automatic chicken cage startup, are finding it cheaper and easier to import high quality Asian-made products through Alibaba, rather than through traditional import-export go-betweens.

In addition, Alibaba runs the Alibaba Express retail domain, and the Taobao peer-to-peer exchange platform (the Asian eBay if you will), all of which dominate the Asian online commerce market.

Why this IPO matters

Recent filings reveal that the company intends to release 320.1 million shares valued in the $60-$66 range per share. If that is the case, Alibaba could raise somewhere between $19.2 billion and $21.1 billion, potentially breaking the record set by the Visa IPO at $19.7 billion in 2010.

It is also a sign that Alibaba is getting ready to go global, as the additional injection of cash will enable the company to build up retail and shipping infrastructure all over the world. If this were to happen, Alibaba would open up doors for consumers everywhere to more affordable Asian-made goods, without having to go through middlemen retailers who hike up prices to match domestic standards.

With that in mind, a massive expansion of Alibaba could mean the end of retail as we know it.

Why not utilise new phenomenon – eToro ´s social stock trading and invest in Alibaba? (As Seen On BBC)

To help you decide whether to invest or not, here’s how Alibaba fares against its main international rival, Amazon:


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