Alibaba…

[Coronita]

It’s pretty amazing it’s market cap is now more than facebook or amazon or IBM for that matter….

But unlike amazon, at least it’s profitable…lol…

[poorgradstudent]

Is it really amazing?

Facebook has had a very hard time truly monetizing its user base. It’s one Next Big Thing away from not existing. I know a lot of people who are only on Facebook because everyone else is. On top of that, the kids aren’t really into Facebook. Too many grown ups. I actually had no idea they were profitable though! But yeah, FB went public once Zuck knew there was little exponential growth opportunity left; he sold out at the peak.

Amazon has to deal with tiny margins because ultimately they compete with Walmart and Home Depot and other stores where you can buy the same products.

IBM of course blew their opportunity in the 80s to be a true juggernaut.

Of course there is certainly some froth in that BABA price right now. It’s priced too high for long term investors, so that’s traders playing with each other and dumb money hype buyers who will be left holding the bag.

[carlsbadworker]

But $200B market cap on less than $10B revenue?? Yes, its gross merchandise volume is higher than Amazon, but so what? If the business model cannot make money from these, it still is irrelevant. Therefore, cashier are paid close to minimal wages even though millions of dollar go through their hands each month.

This is not a short-term recommendation for buy or sell though. But these IPO madness just brings us one step closer to the bubble burst.

[livinincali]

Alibaba IPO mania, just like 1999-2000. We’re getting really close to seeing this stock market bubble blow up. It would be ironic if today marked the market top. Don’t think we’re there yet but it’s getting closer.

[ltsddd]

baba’s profit margin is insane and somewhat unbelievable and most definitely unsustainable at almost 50%. I like baba as a company but not as a stock at the current valuation.

I like amzn and what bezos has been trying to do – he’s constantly looking to innovate to help expand amazon’s footprint. bezos is very much a visioneer as steve jobs was.

[ltsddd]

a question for the investors/gamblers on this board. If you have $10k to invest in either tesla motors or alibaba which stock would you buy?

[The-Shoveler]

Don’t know about Alibaba

I don’t play the market anymore (not any good at it).

But that said, my prediction is we will not see another Market crash until after the next Prez takes office.

It seems the Dem’s don’t like Market crashes. IMO anyway.

[moneymaker]

Neither. But if my hand was forced, I would buy Tesla. Alibaba almost went bankrupt in 2009, not really that long ago. Batteries are the future, I hope Tesla can improve upon them. Given a choice I always like to buy domestic stock. P.S.- I think the next recession could be caused by China.

[poorgradstudent]

[quote=ltsdd]a question for the investors/gamblers on this board. If you have $10k to invest in either tesla motors or alibaba which stock would you buy?[/quote]

Neither?

I like both companies, but think both have overvalued stock prices right now. Tesla is falling so there may be a buy opportunity in the next few months, and IPOs are so chaotic it’s hard to predict where things settle. But with BABA there probably will be a low once all the traders exit. If you bought FB ~6 months after the IPO you look like a freaking genius right now, so BABA may have a similar opportunity?

[Coronita]

Kinda mad I sold by GoPro stock, not that I had many shares to begin with…

[spdrun]

It seems the Dem’s don’t like Market crashes. IMO anyway.

2000-1 dot.com bubble crash started under Clinton.
2007-1 property crash started under Bush.

We’re about evenly split.

Yellen seems determined to stay the course on tapering, which IS tightening despite her best remonstrations. We’re already seeing rates going up and indicators slowing down.

As far as the $10k question, I’d buy $1000 of both to minimize risk while not being out of the market entirely.

[livinincali]

[quote=spdrun]
2000-1 dot.com bubble crash started under Clinton.
2007-1 property crash started under Bush.
[/quote]

2014

[an]

[quote=livinincali][quote=spdrun]
2000-1 dot.com bubble crash started under Clinton.
2007-1 property crash started under Bush.
[/quote]

2014[/quote]
Less than 4 months left.

[spdrun]

..

[SK in CV]

[quote=spdrun]

We’re already seeing rates going up and indicators slowing down.

[/quote]

Wishful thinking. Bonds are the same place they were 15 months ago. They’re gonna go down, but nobody wants to be the first one out. And I don’t know what indicators you’re looking at, but there’s nothing that’s trending down.

[Author]

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