Tuesday, May 6, 2014

Alibaba Files to Go Public in the U.S.

Alibaba is an internet company wishing to offer stocks into the U.S. market, and this offer is appealing to many U.S. investors as it is a way to finally break into the Chinese enormous growth.  This company is also a great giant as its share prices are similar to that of Facebook - not yet Google or Apple - and is making a 45% profit margin, which more than doubles the margins of other big companies like eBay. 

There is constant concern of China overpowering the U.S. economy in the coming years as many economists are measuring their global influence, growth trends, and importance of the global economy.  This is curious as the company is making it able for the U.S. investors to buy into their shares and become part owners of a massive industry that represents a great portion of Chinese economy. 

Although this may be a stretch, but perhaps this is a glimpse into a world where although political tension is present between two countries, the capitalist mentality takes priority as such differences are set aside because of the desire to acquire more investors and expand a business.  Essentially running its business in disregard with issues sparked through international relations.

Scott Bishop

http://dealbook.nytimes.com/2014/05/06/alibaba-files-to-go-public-in-the-u-s/?hp

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