The 4 Keys to Alibaba’s IPO Value

The 4 Keys to Alibaba’s IPO Value (Financial Times)

In a couple of months, China’s mammoth ecommerce company Alibaba will become a publicly listed company. Estimates for its value at the time range from $120 billion to $250 billion. That’s quite a range, and investors are itching to know which end it will come closer to. Will it execute a Facebook-like belly flop, and come in at — or below — the low end? Or will it make millions of dollars for first-in investors by coming in near the top end? Well, according to The Financial Times, that figure depends four factors concerning the company’s growth, including sales seasonality, the percentage of each sale the company retains, the company’s presence in mobile purchasing and Chinese consumer spending. If you, or your investing network, have an inside track on knowing about any of these variables, that may be enough to tip the scales in your favor — which will be all you need when Alibaba goes pubic.

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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