Alibaba is a Chinese corporation that operates as a bank, marketplace and a search engine. The company is the largest online retailer in the world, handling 80% of all online retail sales in China. The company handled more money in transactions last year than Amazon and eBay put together. It’s made up of three major websites that have millions of users all over the world. The three main sites are Alibaba.com, Taobao, and Tmall. Taobao is a shopping website that gives seven million merchants a place to sell, and Tmall is a retail site where major businesses such as Apple and Nike are able to sell products directly to Chinese shoppers. Alibaba does not currently have a date listed for its IPO, but it is expected to go public in early August. It will be listed on the New York Stock Exchange.
It will be one of the most valuable technology companies in the world after its IPO, as well as one of the most valuable Chinese companies. In a country where e-commerce is growing at an incredible rate, Alibaba is the dominant presence in online retail. This is what has caused its valuation to increase so drastically in the last couple months. Its revenue revolves around merchants using advertisements to stand out to the online shoppers. The IPO is not just about the company alone; it is about the idea of bringing a mass amount of United States investors to invest in a Chinese stock for the first time. China is hopeful that this will open a new door for many Chinese corporations. How do you think the stock will perform after its IPO? Will Alibaba be able to keep outpacing its competitors in the online retail industry?