Alibaba makes history

Commentary by
Brad Elkin

Alibaba, China’s largest e-commerce company, made history on Sept 18. It released the largest initial public offering (IPO) ever at $68 per share. It raised $25 billion dollars in their IPO and sold approximately 368 million shares. On Sept. 19, Alibaba stock traded for approximately ($92 per share) 35 percent above the $68 dollar IPO price on the New York Stock Exchange (NYSE). The diversity of Alibaba is what makes it such a great organization.

Alibaba is responsible for the sale of a wide variety of goods and services across China and even around the world. Essentially, Alibaba is an online marketplace that has access to many resources that make it easy purchase goods online. This online organization has huge potential in the market as we continue to see new advancements and innovations in technology.

Partnerships with multiple online search engine and payment companies allow Alibaba to continue to expand their company. One example is “Alipay,” which is an online payment service provider for Alibaba in China. It allows customers to purchase items and pay through their account. Alipay is similar to the company PayPal, which many people from the United States use when making online purchases.

An additional opportunity that could look promising for Alibaba would be their partnership with Apple.

This idea has been spoken of, but it has not been put into effect yet. The idea behind the partnership would be blending Alibaba’s Alipay with Apple’s “Apple Pay.”
By blending the two, Alibaba users would be able to pay for Apple goods with Apple Pay while using the cash from their “AliPay” accounts. Basically this would simplify payment processes for Apple goods on the Alibaba website.

Yesterday, the stock closed at $114.54 a share which is approximately 68 percent above the IPO price less than two months ago. Many think the stock is too high right now for a newer company.

Personally, I believe Alibaba will continue to expand and enlarge its company generating more revenue and growth in the stock price. Overall, this online organization is definitely something to look into when investing.

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