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Spot The Bubble

Tyler Durden's picture




 

Presented with little comment aside to suspect the answer to our implicit question is something like "it's the new economy" or "you don't understand the new valuation metrics"

 

Alibaba tops Walmart's Market Cap... Walmart's quarterly sales are 44x Alibaba's - that is all.

 

Source: Bloomberg

 

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Tue, 11/04/2014 - 16:14 | 5411785 firstdivision
firstdivision's picture

Well technically those that buy Alibaba share on the NYSE are only owning some shell company stock, which sounds fan-fucking-tabulous take my money! 

Tue, 11/04/2014 - 16:19 | 5411797 LawsofPhysics
LawsofPhysics's picture

Boom.  Welcome to the "fake" world.  Alibaba can be whatever they want it to be...

 

Buy low sell high, no worries mate. 

Reality is for people who actually make real shit.

Tue, 11/04/2014 - 16:24 | 5411842 kaiserhoff
kaiserhoff's picture

Hmmm.

Looks like Walmart needs to quit selling stuff, and buy back some stock.

It's the new normal.

Tue, 11/04/2014 - 16:29 | 5411862 Gen.Ackbar
Gen.Ackbar's picture

Its a Trap!

Tue, 11/04/2014 - 16:39 | 5411911 msamour
msamour's picture

Thanks man! I just snorted my tea all over my keyboard. Now all my colleagues are looking at me funny...

Tue, 11/04/2014 - 16:43 | 5411921 BKbroiler
BKbroiler's picture

I stil get shit from my brother who doubled his money on Facebook.  I just can't bring myself to trust stocks for social media or e-commerce sites.  I mean jesus, if amazon doesn't make money, how the hell is Alibaba going to be any different?  This all ends with a loud pop and a bunch of vertically airborne traders.

Tue, 11/04/2014 - 17:05 | 5412019 Save_America1st
Save_America1st's picture

@BKbroiler

Tell your brother to buy Alibaba stock now while you stack phyzz silver like a maniac.

Turn-about's fair play.  Wait a few years.  You'll have the last laugh when all his paper is worthless and your phyzz is priceless ;-)

Tue, 11/04/2014 - 17:08 | 5412031 BKbroiler
BKbroiler's picture

I sold all my gold at $1650 and my silver at $25. Gonna wait for $900 and $12.  Not that those prices make any senese intrinsically, but I think we're headed there.  

You know things are messed up when a Wendy's value meal costs more than an ounce of silver.

Tue, 11/04/2014 - 17:52 | 5412163 TVP
TVP's picture

Funny you should mention that, as I recall an article a few months ago by some establishment hack entitled something like "silver headed to $12".

Everyone mocked it at the time, but in retrospect it was probably written so that once the banks manipulate it down to that level, they can trot out the same trolls and say, "LOOK!  TOLD YA SO!  PM'S SUCK, BUY STOCKS!!" ...and then comes the burst.   

Tue, 11/04/2014 - 23:24 | 5412348 BKbroiler
BKbroiler's picture

Tue, 11/04/2014 - 16:47 | 5411938 Consuelo
Consuelo's picture

Gawd-Damn-it...   I needed an IaT fix right about now and you didn't disappoint...!!!

 

+1000

Tue, 11/04/2014 - 16:55 | 5411981 ebworthen
ebworthen's picture

I didn't think the Death Star was going to be a Chinese Internet company.

Tue, 11/04/2014 - 17:05 | 5412021 BlindMonkey
BlindMonkey's picture

It sounds like the perfect Chinese stock to me.

Tue, 11/04/2014 - 16:37 | 5411895 franciscopendergrass
franciscopendergrass's picture

Only if the government would "buy back" some bonds and dollars.  The money supply is way diluted.  

Tue, 11/04/2014 - 16:27 | 5411840 MrPalladium
MrPalladium's picture

Yet another Cayman Islands holding company that downstreams all proceeds to the Chinese subsidiary and guarantees the debt of all Chinese subsidiaries. It is a one way flow of money to China, just like Suntech which is now in bankruptcy proceedings in the Cayman Islands which had all of its Chinese subsidiary assets claimed by provincial governments and reorganized leaving U.S. investors without any claims or recourse against those assets.

The Alibaba that U.S. investors bought is an empty drawer in the desk of a Cayman Islands lawyer.

Tue, 11/04/2014 - 16:28 | 5411853 kaiserhoff
kaiserhoff's picture

That is a creative financial arrangement.

I think it should be called the "go pound sand" method of share holder relations.

Tue, 11/04/2014 - 16:53 | 5411974 JuliaS
JuliaS's picture

I spot 2 bubbles.

Tue, 11/04/2014 - 16:16 | 5411791 SethDealer
SethDealer's picture

i looked at alababa, it is just chinese ebay

Tue, 11/04/2014 - 16:27 | 5411852 McMolotov
McMolotov's picture

Jack Ma and his box-shaped head are raughing all the way to the bank.

Tue, 11/04/2014 - 16:29 | 5411860 saints51
saints51's picture

MUWARARARARARARRARA!!!!

Tue, 11/04/2014 - 16:57 | 5411988 BKbroiler
BKbroiler's picture

We swindred some forks

Tue, 11/04/2014 - 16:34 | 5411881 JohninMK
JohninMK's picture

You have to wonder how much of the IPO is now sitting safely in a vault, looking suspiciously like gold bars.

Tue, 11/04/2014 - 16:20 | 5411792 NoDebt
NoDebt's picture

We need more mono-dimensional comparisons around here.

WalMart's got a lot of overhead BABA doesn't.  WalMart has scillions of employees to support.  And, frankly, WalMart is at market saturation and everyone knows it.  What's left is beginning the slow descent so many have suffered before it (Sears comes immediately to mind).

Is BABA worth $250 billion market cap?  Hell no.  But it still doesn't make that simplistic graph a valid way of comapring valuations.

Tue, 11/04/2014 - 16:20 | 5411811 LawsofPhysics
LawsofPhysics's picture

Walmart happily accepts EBT cards.  Many local vendors do not.

Interesting times motherfuckers.

Tue, 11/04/2014 - 16:42 | 5411915 franciscopendergrass
franciscopendergrass's picture

Maybe Alibaba should try to work the EBT angle to raise revenue.  Everyone else is.

 

Tue, 11/04/2014 - 16:50 | 5411958 The9thDoctor
The9thDoctor's picture

By not accepting EBT, Alibaba is missing out on 47 million american consumers.

Tue, 11/04/2014 - 17:11 | 5412042 D-liverSil-ver
D-liverSil-ver's picture

Reminds me of a local Ice Cream truck I saw this past summer.

In Giant 3 foot letters  EBT .

Tue, 11/04/2014 - 16:20 | 5411814 Rakshas
Rakshas's picture

Walmart employee support is the quintessential snake eating it's own tail ..... donation boxes in its stores for its employees..... come in buy a can of corn drop it in the box so the greeter can eat that night....... what is Pax Americana........... again........ I forget....

Tue, 11/04/2014 - 16:35 | 5411890 p00k1e
p00k1e's picture

Don’t buy that can of food.

Offer the Wal-Mart employees a few dollars for a sex act.  Condoms are in aisle four. 

Tue, 11/04/2014 - 17:35 | 5412111 Agent P
Agent P's picture

When was the last time you saw someone working (or shopping) at Walmart that you wanted to bang?  I'd rather make the donation.

Tue, 11/04/2014 - 17:07 | 5412024 css1971
css1971's picture

Not being a usasian.... Are you taking the piss?

Tue, 11/04/2014 - 17:15 | 5412053 Bananamerican
Bananamerican's picture

no, he's "leaving the corn"

Tue, 11/04/2014 - 17:17 | 5412059 Rakshas
Rakshas's picture

you talkin' to me????..... well I'm the only one here..... 

sorry little deNiro moment there

re Walmart food drive .....  http://www.zerohedge.com/news/2013-11-19/sign-times-wal-mart-launches-em...

re Walmart Condoms ...... http://www.walmart.com/tp/condoms  ..... ribbed for her pleasure ..... but i turn them inside out....

Tue, 11/04/2014 - 21:24 | 5412786 just-my-opinion
just-my-opinion's picture

I went to wally the other day (BEER)

 

There were two people in front of me and the black dude checkin us out moved so slow....I thought he was in a coma

 

Almost all their empolyees need Government assistance

 

I have gone in there and half the lights were out

 

PS....I live in a really nice area and the store is very nice but I think all the black people work there....of course they come from across the freeway

Tue, 11/04/2014 - 16:17 | 5411793 DaddyO
DaddyO's picture

Wasn't there another article on ZH Homepage about Reality in the markets?

What has reality got to do with anything anymore, the fantasy world of Alibaba, WalMart or any other propped up stock confirms the other article.

DaddyO

Tue, 11/04/2014 - 16:17 | 5411794 Rakshas
Rakshas's picture

..........You're gonna need a bigger boat.....

Tue, 11/04/2014 - 16:16 | 5411795 Dr. Engali
Dr. Engali's picture

But Alubaba sells cheap Chinese crap over the Internet and Walmart sells cheap Chinese crap out of a big ugly box. Those big ugly boxes are expensive.

Tue, 11/04/2014 - 16:18 | 5411804 NotApplicable
NotApplicable's picture

And filled with people I'd rather not encounter.

Tue, 11/04/2014 - 16:25 | 5411847 Winston Churchill
Winston Churchill's picture

Its Halloween everyday in WallyMart.

Tue, 11/04/2014 - 16:29 | 5411863 kaiserhoff
kaiserhoff's picture

Cannus maximus.

Tue, 11/04/2014 - 17:18 | 5412061 semperfi
semperfi's picture

annus crackass maximus

Tue, 11/04/2014 - 16:19 | 5411802 ninja247
ninja247's picture

#newNormal

Tue, 11/04/2014 - 16:21 | 5411809 lasvegaspersona
lasvegaspersona's picture

Can we get Alibaba at WalMart?

Tue, 11/04/2014 - 16:21 | 5411813 Bunga Bunga
Bunga Bunga's picture

But, but, but they're a teaming up with Apple. Can we order all the Chinese crap on the iTunes store soon?

Tue, 11/04/2014 - 16:24 | 5411821 thunderchief
thunderchief's picture

Its called a Ponzi

There was a reason they wouldn't let this go public in Hong Kong..

That should tell anyone what a snakepit Wallstreet is today. It could not even get listed on the Hong Kong exchange!

Tue, 11/04/2014 - 17:48 | 5412144 armageddon addahere
armageddon addahere's picture

Did they try the Tijuana Stock Exchange?

Tue, 11/04/2014 - 16:22 | 5411823 Kaiser Sousa
Kaiser Sousa's picture

BUY BOTH HANDS...BUY I SAID!

Tue, 11/04/2014 - 16:22 | 5411824 Pumpkin
Pumpkin's picture

For God's sake, bubbles are round.

Tue, 11/04/2014 - 16:22 | 5411827 Bill of Rights
Bill of Rights's picture

RealClearPolitics - Election 2014

 

Acting as Republicans are in the lead, while Acting as Democrats are losing.

 

Tue, 11/04/2014 - 16:23 | 5411828 tarsubil
tarsubil's picture

What's the big deal? It is a given that Alibaba will have 100% profit margin for the next 100 years. Or something, trust me.

Tue, 11/04/2014 - 16:25 | 5411841 NaiLib
NaiLib's picture

:) "Trust me" Is exactly what $BABA's boss said to investors at the IPO day

Tue, 11/04/2014 - 16:26 | 5411850 4 wheel drift
4 wheel drift's picture

yes, as he muttered in silence......

 

".... while i fuck all of you..."

 

but keep eating my shit for now....

Tue, 11/04/2014 - 16:31 | 5411869 Groundhog Day
Groundhog Day's picture

dont you mean "trust Ma"

Tue, 11/04/2014 - 16:40 | 5411913 The Most Intere...
The Most Interesting Frog in the World's picture

Jeff Bezos: "Profit margins? Who needs profit margins?"

Tue, 11/04/2014 - 16:33 | 5411877 franciscopendergrass
franciscopendergrass's picture

The only way Walmart can grow now is if they increase the welfare budget

Tue, 11/04/2014 - 16:40 | 5411903 The Most Intere...
The Most Interesting Frog in the World's picture

And how is Alibaba not relying on the same thing?

Tue, 11/04/2014 - 16:40 | 5411908 p00k1e
p00k1e's picture

Many people believe government isn’t directly responsible for job creation.   You just provided demonstrative evidence.

Tue, 11/04/2014 - 16:34 | 5411882 Squid Viscous
Squid Viscous's picture

Cramer said BABA's a straight shot to 120... the little beady eyed fucking kyike

Tue, 11/04/2014 - 16:39 | 5411905 Groundhog Day
Groundhog Day's picture

now now..leave cramer alone, cramer gives the best ideas...you just have to do the opposite of what he is saying...last trade idea....when gpro was at 68, he said he would wait to 50....the rest is a sucessful trade

Tue, 11/04/2014 - 16:38 | 5411900 22winmag
22winmag's picture

WalMart... the largest seller of ammunition in the U.S.

 

Clearly doing God's work.

Tue, 11/04/2014 - 16:52 | 5411973 The9thDoctor
The9thDoctor's picture

If you get their Walmart Master Card you can get 0 interest financing on said ammunition.

Tue, 11/04/2014 - 18:54 | 5412357 stant
stant's picture

One of the guys at our Wally who works the sporting goods ammo etc was at the range this afternoon. Saw him teaching a novice how to use a scope. Knows his stuff.

Tue, 11/04/2014 - 16:41 | 5411907 bnbdnb
bnbdnb's picture

Such a large spread. Buy walmart, sell alibaba. Hold indefinitely.

Tue, 11/04/2014 - 17:36 | 5412119 Obaminator
Obaminator's picture

Walmart Boxes are not expensive...they are CHEAP buildings, plus they dont pay !@$# to the workers, and actually there are hardly any workers at Walmarts compared to the hundreds or even thousands of customers shopping at any given time.

Walmarts BIGGEST expense is that family of leeches CEO's who buy that cheap chinese stuff ands sell it to their own employees HAHAHAHHA

Brilliantababa.

Tue, 11/04/2014 - 18:09 | 5412213 deeply indebted
deeply indebted's picture

I'd like to see a similar comparison for Tesla.

Tue, 11/04/2014 - 18:11 | 5412226 reTARD
reTARD's picture

Different electrons, both still beastly bubbles.

Tue, 11/04/2014 - 18:13 | 5412229 fibonacci's claus
fibonacci's claus's picture

IMPEACH BARAK ISIS HUSSEIN EBOLA OBAMA FOR TREASON !!!

AMNESTY = CIVIL WAR

Tue, 11/04/2014 - 19:18 | 5412421 working class dog
working class dog's picture

The big headed chink will be selling tulips to  his sout seas company pretty soon, I cant wait to 4th mortgage the house to load up on the Alibaba mania train wreck, I hope my pension fund money managing chronies didnt buy this moving target stock, I heard they hired Maddoff as a consultant on the IPO and money management.

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