Shares in Alibaba Group surged as high as $99.70 today in its NYSE debut after its initial public offering was priced at $68. At $200 million, it will make the Chinese e-commerce company one of the most valuable in the U.S. market. Significantly, it will be a higher market value than Amazon, whose stock also surged today.
Alibaba consists of numerous online portals to everything from retail to payment services for consumers and businesses, with a commanding presence in China’s fast-growing e-commerce sector. It is big — including in profits. Alibaba also has a cloud computing unit. Significantly, it is privately held and not state owned.
Hype over Alibaba is huge. So are comparisons with the company making such a big difference in Seattle’s economy. This Forbes columnist is betting on the Chinese giant. Business Insider laid out why Alibaba is a “serious threat” to Amazon. But comparisons are risky. The two companies have different business models. Alibaba makes much of its money from advertising.
What do you think?
This Week’s Links:
• Silicon Valley’s contract-worker problem | NY Mag
• New research says world population won’t plateau in 2050, but keep booming | MIT Technology Review
• How a nation’s soil explains its economic fortunes | The Atlantic
• American attitudes on international trade | Tim Taylor
• Could fighting climate change be cheap and free? | Paul Krugman
• In praise of China’s new normal | Project Syndicate
• The people’s corporations | Lucy P. Marcus
Today’s Econ Haiku:
Russia’s gone too far
Retaking its empire, fine
Now it wants our Pabst
Follow me on Twitter @jontalton — you won’t be bored.