Alibaba, the Chinese equivalent of Ebay could become a publicly traded company as soon as next week. This IPO is expected to raise about $20 billion or more, which will make it the largest IPO of all time. For those who are unfamiliar with how e-commerce sites work, users auction or sell a wide array of goods through the website and ship them around the world – including to the United States. This competition may eventually lead to cheaper prices for online shoppers. Furthermore, for people interested in investing, this could be an opportunity to make money.
According to analysts at Bloomberg, Yahoo! will be returning at least half of its earnings from the Alibaba IPO to shareholders. This is good news for those who’ve kept their shares in Yahoo despite of its troubles.
Yahoo, which has a 24% stake in the Internet company is expected to make about $10 billion in the Alibaba IPO. This, according to analysts is a good time to buy shares in Yahoo!, as the company plans to give a significant portion of the profits they make from this IPO back to shareholders. Alibaba’s mobile sales increased by roughly 24% in the second quarter of this year, and are expected to see a steady increase in sales after the company goes public on the New York Stock Exchange next week.
Read more here – “Here’s Why Alibaba is Becoming a Huge Threat to Amazon and Ebay,” (Cooper Smith, Business Insider)