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Berger: Alibaba launches, then what?
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What do you think Alibaba shares will do immediately after they go on sale on Friday? Take off like a rocket or dive as the initial excitement fades? Alibaba shares are expected to be priced at around 68 USD, clearly aimed at tempting retail investors.
Difficult to directly compare Alibaba with other internet stocks but Serge notes that with both Twitter and Facebook there was a drop off point shortly after the IPO, with Twitter that stage was reached about a month after launch and with Facebook just one day later.
The fundamental attraction to Alibaba remains intact. High growth, up 55% in the year leading up to March 2014, a growing number of active monthly buyers, 255 million according to Alibaba's latest filing and huge potential for expansion both in China and the West. Serge Berger believes the serious investor will want to take a piece of the action.
Investors can look at Yahoo stock for a chance to trade the Alibaba IPO. Yahoo owns a 23% chunk of Alibaba, Saxo clients can start placing orders for Alibaba stack after the NYSE closes on Thursday night.