The Biggest IPO in History Is Finally Here!
By Carly Forster
Alibaba Group Holding Ltd (NYSE:BABA) is a Hangzhou, China based e-commerce website that promotes the leading online and mobile forums in retail and wholesale trade, as well as cloud computing and other services. According to Alibaba’s website, the company provides technology and services to enable consumers, merchants, and other participants to conduct commerce in its ecosystem. On Friday, September 19th, Alibaba finally revealed its IPO at $68. At the end of the day, the stock closed up 38.07% at $93.89.
Alibaba quickly became the largest IPO in history on the American exchange, raising $21.8 billion late Thursday. Jack Ma, Chief Executive Officer of Alibaba, told CNBC in an interview that he wants his company to “change the world” and eventually be in the same league as American icons like Wal-Mart Stores, Inc. (NYSE:WMT), Microsoft Corporation (NASDAQ:MSFT) and International Business Machines Corp. (NYSE:IBM).
Shares of Alibaba opened at $92.70 on Friday, September 19th. The e-commerce company has a 1-year high of $99.70 and a 1-year low of $89.95. The stock’s daily moving average is $94. The market cap for Adobe is $231.44 billion and its P/E ratio is not applicable.
On September 19th, Cantor Fitzgerald analyst Youssef Squali initiated a Buy rating for Alibaba with a $90 price target. He noted, “We believe that a differentiated pricing model, strong brand, and unmatched scale give Alibaba Group Holding Ltd (NYSE:BABA) an unfair competitive advantage relative to peers both in and outside China. While the stock’s not cheap, we believe the company’s outsized growth and margin profiles, if sustained, should support higher valuation over time.” Squali currently has an 81% success rate in recommending stocks, earning him a +33.1% average return and the #2 spot out of 3306 analysts on TipRanks.
Separately on September 19th, Seeking Alpha blogger, Orange Peel Investments, was not so excited about the reveal of Alibaba’s IPO. He reasoned, “With the above caveats in mind, Alibaba doesn’t appear to us to be a necessary buy simply because it’s going to be the ‘biggest IPO in history.’” Orange Peel Investments currently has a 37% success rate in recommending stocks, earning him a +0.2% average return.
On average, the top analyst consensus for Alibaba is Strong Buy
To see more recommendations for Alibaba Group Holding Ltd (NYSE:BABA), visit TipRanks today!
Carly Forster writes about stock market news. She can be reached atCarly@tipranks.com