Alibaba Stock Draws Strong Bids after IPO – Sept 22, 2014

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Alibaba Stock Draws Strong Bids after IPO - Sept 22, 2014

Alibaba Stock Draws Strong Bids after IPO - Sept 22, 2014

Alibaba stock had a successful IPO recently, as stock prices soared after the launch and initial dip. It appears that traders had been waiting for this IPO and had been ready with their long positions for the stock.

Price has opened around the $91.50/share levels then dipped to the $90.00/share support before skyrocketing close to $94.00/share. This suggests strong buying momentum for Alibaba stock, which could soon see share prices near the $100/share level.

Alibaba Stock Demand

Alibaba is an online directory based in China and launched under the NYSE ticker BABA. Its IPO currently ranks as the world’s biggest as additional Alibaba stock was sold in the wake of the strong demand.

The IPO ranks as the largest in history at $25 billion and seeing close to 40% in gains on the first day. Underwriters then exercised an option to sell another 48 million in shares just to meet the strong market demand for Alibaba stock.

Its owner Jack Ma decided to sell an additional 2.7 million shares while co-founder Joe Tsai sold nearly a million shares based on the Alibaba stock prospectus. Yahoo Inc. invested in these shares, as the company made roughly $9 billion on the Alibaba IPO and has profited significantly from an earlier investment of $1 billion in the company.

With that, FactSet reports that Alibaba has a market capitalization of $219.80 billion, making it larger than Facebook, Amazon, or eBay for now. The company owns several firms based in China and earns from transaction fees of its subsidiaries through PayPal.

Further gains are expected for Alibaba stock after this successful IPO, as the company has been posting consistent annual profits. Should this trend continue, shares could eventually trade past the $100.00/share psychological level and make its way closer to $150.00/share before the end of the year.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com

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Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at ForexMinute.com. Before ForexMinute.com was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.