Yesterday, Alibaba Group Holding Ltd (NYSE:BABA) announced that underwriters exercised an option to purchase additional shares at the IPO price of $68, bumping the total amount sold from the originally planned $21.8 billion to $25 billion. This makes it the highest IPO in history.
What warrants the company’s impressive valuation? Saxo Bank has pointed out a few things of interest in this infographic that was published just before trading began. For starters, China is still a market that has not reached maturation. Only 36% of GDP is made up of private consumption, and the country is bound to gain 120 million internet users over the next couple of years. Internet penetration is only at 46%, which means there are plenty more consumers to target.
Ten reason you should go long in Alibaba
In August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More
Infographic source: Trading Floor