Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Yahoo Inc (YHOO), Alibaba Group (BABA) Would Like to See A Pop In the IPO Day: Jackson Wong

Alibaba Group seems to be in no hurry to recur to an Initial Public Offering (IPO), which has mixed feelings attached to it.  Apparently, the company’s looking to grow as large as possible in its local medium, then predate on all its competition worldwide. Jackson Wong, vice president at Tanrich Securities said on CNBC that growth can still be around 30% for the next 5 to 10 years, which is pretty solid for a business valued about $150 billion. 1

Yahoo! Inc. (NASDAQ:YHOO) has about 22.5% stake in Alibaba Group and its stock price will certainly enjoy a bump due to the upcoming IPO. It’s not clear if the effect will be a lasting one, there are no clues as to where the value target will be, but the price will be getting higher.  Yahoo! Inc. (NASDAQ:YHOO) grew almost 1% during the day to little more than $43 and looking at the graph for the last two months, it might follow the same pattern for a while. Obviously, the growth is not entirely the e-commerce company’s success, yet its contribution cannot be negligible. No wonder Alibaba Group is not in a rush to ask for money.

There’s a lot of fuss around what seems to be the biggest public offering in history, around $24 billion are planned to be raised through it, as we go further in time and somehow farther from initial price estimates. There is some fright that the deal might follow Facebook Inc (NASDAQ:FB)’s example

“I think from the sentiment they could raise the band or even increase the IPO size, but they are seriously thinking about: let it as is, because they would like to see a blockbuster IPO and also they would like to see a pop in the first day,” said Jackson Wong.

It will not do them much good if investors get nervous, but at the same time there’s actually no need for Yahoo! Inc. (NASDAQ:YHOO)’s team to start biting their nails. Alibaba Group is a large enough company not to fall short in shares like Facebook Inc (NASDAQ:FB) and as price estimates begin to fluctuate less, the market will have digested the most important information about the company thus stabilizing the price.


Disclosure: none

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!