It has been a year for successful IPO’s in 2014. The year 2014 saw a very successful, stunning and record breaking debut of Chinese internet company, Alibaba Group Holding Ltd (NYSE:BABA). Last Thursday saw another stunning debut of LendingClub Corp (NYSE:LC), the company which connect people with and without money. These two huge IPO’s sparked a debate, which company’s debut was important and significant in Wall Street. Bloomberg’s Paul Kedrosky and Cory Johnson discussed on Bloomberg TV about which IPO was important.
Kedrosky mentioned that Alibaba Group Holding Ltd (NYSE:BABA)’s IPO was more popular, mainly due to its volume and scale. But he feels that LendingClub Corp (NYSE:LC) was more important to drive the changes into the market with a new creative financing technique. He thinks that there is nothing new that Alibaba is doing which others are not, but LendingClub is unique in its own way.
“[…] We were so preoccupied with Alibaba, which I honestly think will turn out to be sort of a capital eating footnote sort of history, whereas LendingClub is going to represent this ravising change for financial markets for the next 5 years,” Kedrosky Said.
Johnson doubted that the innovative approach of LendingClub Corp (NYSE:LC) makes it $9 billion worth. Kedrosky feels that the valuation might be a little higher for LendingClub Corp (NYSE:LC) at this stage. He added that in terms of where the biggest opportunities are going to be, what is going to transform the market, it’s all LendingClub Corp (NYSE:LC).
Kedrosky feels that LendingClub has a sort of growth in future which Alibaba Group Holding Ltd (NYSE:BABA) has engineered in the past.
Kedrosky added that there might be some interesting IPO’s in 2015, which might include Uber in technology space and companies like Wealthfront in financial space. He feels that Uber is something like Alibaba, which might not transform the market, but he thinks that companies like Wealthfront and LendingClub could transform the financial market.
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