Alibaba now worth more than Facebook, Amazon, and IBM
Alibaba is now a public company. It is listed on the New York Stock Exchange and on the first day of its listing the company's worth is more than IBM, Amazon and Facebook. The value of each share is more than the initial asking price by about one-third and the current market capitalization is around $228 billion. However, Microsoft, Google and Apple are still ahead of it among the United States tech companies.
There are several reasons for the Chinese e-commerce company to perform more than expectations on the NYSE. It has mastered the country's economy and is believed to be achieving the same in other countries before any US company manages to doÂ the same in China. Apple has greatly struggled to take a lead in the Chinese consumer market. It has lately failed to satisfy the regulator and forced to keep the new iPhone models off the shelves in the country. Similar stories have been witnessed with Google and Microsoft.
In the SEC filing ahead of getting listed on the NYSE, Alibaba documented China has a good potential online shoppers strength and is about 302 million, which is equal to the US population. China has a population of about 1.3 billion and the company may attract more customers after going online.
The Alibaba stock is now most compelling for US investors as many are seeking to invest in the Chinese consumer market. With further growth of the company in the world, the share prices are expected to grow further.
It is true that the company has not invented any outstanding and significant new technology as Apple has done with iPhone and Google with its plethora of products and services. It is to note that innovation is not only based on research or development in the tech business, it can be something different too.