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With A Market Cap Of $168 Billion, Alibaba Is Bigger Than...

Tyler Durden's picture




 

With a market capitalization of $168 billion after its pricing at $68/share, the upper end of the range which makes this the largest US IPO in history and would be the largest in the world if the greenshoe is exercised, Alibaba, while not a member of the S&P 500 (at least not immediately), will have a market cap that is larger than the following index members:

 

In fact, at that market cap (which will surely rise after its break for trading tomorrow), there are only 22 companies in the entire S&P 500 who will be larger than Alibaba, among which the usual mega suspects, AAPL, XOM, GOOG, MSFT, BRK, but also JPM, Facebook, Pfizer, Verizon and Bank of America.

However, assuming BABA rises by 10% tomorrow, it will surpass such tech titans as Intel, and Oracle, now ex Larry Ellison, on its first day of trading.

Sustainble? We shall see.

 

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Thu, 09/18/2014 - 18:03 | 5231675 Cognitive Dissonance
Cognitive Dissonance's picture

Imagine a market of 1.2 billion people within one state and Internet controlled border. Alibaba has.

The Chinese 'middle class' is larger than the population of the USA. And they are nearly all tech savy. That is not to say Alibaba is fairly priced. But...........imagine a market of 1.2 billion people......

Thu, 09/18/2014 - 18:06 | 5231699 max2205
max2205's picture

Just get a 4 character stock symbol and it worth a billion...work out the details later

Thu, 09/18/2014 - 18:20 | 5231750 nope-1004
nope-1004's picture

ShittyGroup doesn't surprise me.  How can an insolvent bank continue without Fed and taxpayer support?  At least BABA has traffic and is of use to the billions of Asians.  Can't say the same for ShittyGroup.

Thu, 09/18/2014 - 20:50 | 5232293 mjcOH1
mjcOH1's picture

"....Alibaba..."

Oh, the irony.....

Thu, 09/18/2014 - 21:54 | 5232481 Tom Green Swedish
Tom Green Swedish's picture

The whole point of ShittyGroup was to make the largest bank ever.  It failed.

However the USA definitely has a lock on oil, pills, mobile phone systems and pyramindscheme internet pages.

It is a materialistic world not a gnostic one.  Get it throught your head.

Walmart is still the boss though - they created Alibaba.

Thu, 09/18/2014 - 18:09 | 5231707 seek
seek's picture

And fast forward 5-10 years when they're doing business in the world's next reserve currency. It'd be like owning shares of every retailer in the US immediately after WW2.

Sure, it's probably overvalued, but I sure as hell would bet against a lot of other names in that list above before I would Alibaba.

Thu, 09/18/2014 - 18:59 | 5231885 aVileRat
aVileRat's picture

Yes, given that their revenue is made out of mark to market investments and channel checks imply over 40% of Taobao & Alipay are counterfit + money laundering wash trades, this sounds like a wicked deal, at only 40x too.

 

Thu, 09/18/2014 - 18:11 | 5231718 Let them eat iPads
Let them eat iPads's picture

The Chinese middle class makes $6000 a year.

Thu, 09/18/2014 - 18:19 | 5231746 NidStyles
NidStyles's picture

Yes, but everything is made in China...

Thu, 09/18/2014 - 18:23 | 5231758 nope-1004
nope-1004's picture

Which is why it is a guarantee, with all manufacturing and jobs going to China, that US wages will tumble.  They have to.  Or get subsidized by .gov like GM, which is taxpayer support and a hidden wage cut anyway as your taxes go up to pay for the deadbeats of the country.

Thu, 09/18/2014 - 19:52 | 5232079 Its_the_economy...
Its_the_economy_stupid's picture

Wages w ill not tumble. That foments revolution. Rather, tke dollar wikll be "killed". SAme thing, different mechanism and plebes won't know what hit 'em.

Thu, 09/18/2014 - 18:24 | 5231766 junction
junction's picture

Alibaba will now officially be joining the more than 40 thieves who operate in a cave of untold economic horrors, otherwise known as the stock exchange.

Thu, 09/18/2014 - 19:01 | 5231888 jamochavez
jamochavez's picture

Do know what you are buying when you buy the Ali baba ipo. It is not interest in the company. It is interest in an offshore company that has a contract with Ali baba. How sound is that contract. May want to research before you put a dime into it.

Thu, 09/18/2014 - 19:53 | 5232088 Its_the_economy...
Its_the_economy_stupid's picture

A derivative of a derivitive. Nice. No surprise here.

Thu, 09/18/2014 - 19:44 | 5232059 sessinpo
sessinpo's picture

Cognitive Dissonance    Imagine a market of 1.2 billion people within one state and Internet controlled border. Alibaba has.

The Chinese 'middle class' is larger than the population of the USA. And they are nearly all tech savy. That is not to say Alibaba is fairly priced. But...........imagine a market of 1.2 billion people......

----

And why would I have to imagine that? The internet was suppose to free that capitalist market on the world. With the exclusion of countries like China that sensor the internet, theoretically, a business isn't confined to ones borders. Thus a company any where in the world has a market of the whole world, not just a mere 1.2 billion.

Thu, 09/18/2014 - 20:01 | 5232115 Stormtrooper
Stormtrooper's picture

Most of whom earn less than $2 a day.

Thu, 09/18/2014 - 22:38 | 5232595 Cognitive Dissonance
Cognitive Dissonance's picture

Maybe 20 years ago, but not today. Chinese middle class wages are rising rapidly and it is one of the reasons China is no longer the go to source for cheap labor and manufacturing.

Thu, 09/18/2014 - 18:03 | 5231685 laomei
laomei's picture

Most successful e-commerce platform in the world? Check.  That market cap is low.

Thu, 09/18/2014 - 18:03 | 5231686 FieldingMellish
FieldingMellish's picture

Bigger than all PM miners combined... quality.

Thu, 09/18/2014 - 18:10 | 5231710 Let them eat iPads
Let them eat iPads's picture

More Chinese junk.

Thu, 09/18/2014 - 18:14 | 5231728 skank
Thu, 09/18/2014 - 18:17 | 5231735 slingshot
slingshot's picture

$168b web site that has no assets OK sounds about right

Thu, 09/18/2014 - 18:27 | 5231772 Grande Tetons
Grande Tetons's picture

When is Porntube going public? The only annual report with the pages stuck together. 

Thu, 09/18/2014 - 21:51 | 5232474 SillySalesmanQu...
SillySalesmanQuestion's picture

SEC Regulators compiled that report during a 72 hour marathon of midget tranny porn...

Thu, 09/18/2014 - 18:16 | 5231736 Himins
Himins's picture

It would have been 170 billion, but 2 billion was held in a drawer to run both presidential elections in 2016

Thu, 09/18/2014 - 18:24 | 5231765 q99x2
q99x2's picture

Yes oh yes please put Walmart and Home Depot out of business.

Thu, 09/18/2014 - 18:30 | 5231770 falak pema
falak pema's picture

If the Bush Clinton outsourcing dream was to make China the king of WS in 10 years, they are well on their way there.

Once this happens, there will never be a major war between China and USa; as China will be king or prince of WS...Money has no frontiers nor odors. As long as it stays the greenback as reserve; thats the catch...

The day we move to Yuan then Houston has a problem. 

Putin is trying to push that to occur fast.

I don't really know what monetary table the Chinese will decide to play for the rest of this decade : on Putin's or on the USa's.

From 2020 onwards who knows...as this financial roller coaster will have to come to resolution.

Thu, 09/18/2014 - 18:35 | 5231800 Super Hans
Super Hans's picture

Not sure where my last Alibaba post went...

Any of you actually do business with Alibaba?

I have.

Most suppliers on Alibaba suck.

There are few are rare gems, and they count as some of my best friends.

Best,

SH

 

Thu, 09/18/2014 - 20:45 | 5232273 Vendetta
Vendetta's picture

"Most suppliers on Alibaba suck."

I have noticed that or they're selling capital manufacturing equipment where so few in the US are manufacturing anything here.  How many more manufacturing entities are going to come into existence when there is already production over capacity?

Thu, 09/18/2014 - 18:36 | 5231802 adr
adr's picture

The only problem with China is that it is getting too expensive to do business there. Almost every product we made in China is now being made in the Philippines and Vietnam.

US retailers keep demanding more margin and FOB from China keeps going up.

China is already broke and overextended. They are running through the past 100 years of America at three times the pace. Up next, the downward debt spiral to oblivion.

Thu, 09/18/2014 - 18:48 | 5231841 Super Hans
Super Hans's picture

For the most part, we seek U.S. based parts suppliers. 

Our primary OEM system components are made here.

But, not every componenet we require is made here.

I've had to look towards China for help.

We have had several American manufacturers ignore our requests for design help, because we were too small; or our prospects were not considered viable in their short sighted thinking.

Now? Now, these same comapnies want our business. OK, give us a better price. PERIOD!

Best,

SH

 

 

Thu, 09/18/2014 - 18:43 | 5231835 netpounder
netpounder's picture

Alibaba is bigger than the Fed's printing press?  The Dollar-Yen peg has been finally broken by Alibaba.  Blame the 40 thieves for Yuan rate manipulation.

Thu, 09/18/2014 - 18:55 | 5231843 Lithophiliac
Lithophiliac's picture

This one could go crazy to the upside. I am in.

Thu, 09/18/2014 - 19:06 | 5231910 jamochavez
jamochavez's picture

Do you know what you are buying. Are you buying a share in a chinese company that is not allowed to sell shares to foreign investors or are you buying a share in an offshore company that has a "contract" with Ali baba

Thu, 09/18/2014 - 18:54 | 5231861 buzzsaw99
buzzsaw99's picture

one maggot to rule them all

Thu, 09/18/2014 - 19:08 | 5231924 Bunga Bunga
Bunga Bunga's picture

Alibaba and the 40 thieves has nothing to do with Wall St, really?

Thu, 09/18/2014 - 19:18 | 5231973 Yen Cross
Yen Cross's picture

When was the Death Star renamed the S.S. Alibaba ?

Thu, 09/18/2014 - 19:25 | 5231997 arby63
arby63's picture

Alibaba is the Fed! One company rule! Global fiat! NWO go go go!

Bigger than the world! So big and full of money the earth will shake from its orbit!

I mean ginormous! Save the world Alibaba! Please protect me from ISIS too!

Thu, 09/18/2014 - 20:08 | 5232129 youngman
youngman's picture

You have to post page 11 of the prospectus..it shows the chain of command of this company..its the craziest thing I have ever seen.....you are buying a PO Box in the Caymen Islands..that is all...

Thu, 09/18/2014 - 20:15 | 5232159 jamochavez
jamochavez's picture

Yes. That is what scary. They are pushing out this paper that is a total fraud and the banks are making a mint. An example of what ponzi and fraudulent times we are living in.

Thu, 09/18/2014 - 20:36 | 5232241 Alexgee
Alexgee's picture

People have no memory. How's this ipo different than that crap wall street pushed in the late 90's leading up to the burst of the tech bubble? Anyone here remembers webvan.com , petmd.com, and other such gems?

Thu, 09/18/2014 - 20:50 | 5232298 Vendetta
Vendetta's picture

Yep, I remember.  It was the last time I trusted anything going on in the US economy and nothing has improved of any substance since then.  But then again in 2002 me and a friend were discussing the housing market bust 6 years before it actually happened.

Thu, 09/18/2014 - 20:44 | 5232269 Peak Finance
Peak Finance's picture

IS this 

 

Pets.com

or

Long Term Capital Management

 

??

Thu, 09/18/2014 - 20:52 | 5232300 jamochavez
jamochavez's picture

I believe it may be the worst of both.

Thu, 09/18/2014 - 20:52 | 5232299 Lmo Mutton
Lmo Mutton's picture

Maybe their secret is low overhead or something

Thu, 09/18/2014 - 23:46 | 5232754 netpounder
netpounder's picture

Sucks out the dollars selling Alibaba stocks during IPO, call Chinese gov't to unpeg RMB/Dollar, go to the FX market and buy the crap out of RMB's with IPO proceeds in dollars, file for bankruptcy, use Yuans to buy cheap gold, peg RMB to gold.  American wet dream come true.

Fri, 09/19/2014 - 02:40 | 5232941 onmail
onmail's picture

Thumbs up to Alibaba
And Thumbs down to 40+ thieves of Wall Street.

Fri, 09/19/2014 - 03:22 | 5232980 CHX
CHX's picture

Alibubble... nuff said.

Fri, 09/19/2014 - 08:23 | 5233330 redd_green
redd_green's picture

And obviously worth every penny of the current stock price (smirk)

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