We recently wrote an article on anyoption's blog about the 5 things you should know about the upcoming Alibaba IPO. There was one point in particular that I wanted to expound on a little bit, though. And that's the fact that Alibaba is slowly moving its way across the pond to the United States.
Should Amazon be afraid? What about PayPal, eBay and Google? The sky is really the limit on what Alibaba can do. They aren't just an e-commerce site. They do cloud computing, a search engine (powered by Yahoo!), messaging, and are even beginning to acquire stakes in media and broadcasting outlets.
A couple of months ago, we heard news that Alibaba is opening up shop in the U.S. with an e-marketplace calling "11 Main". They're still not open yet, but the focus is going to be on fashion, jewelry and technology items. And I imagine that the basic model of it will be similar to Alibaba's Chinese marketplaces.
That is, a REAL marketplace, where buyers and sellers can negotiate on the prices and not just any ol' Joe can open up shop. Shop owners will be handpicked by the company.
In that sense, Amazon should be wary. They also just acquired a minority stake in the messaging app Tango, which is California-based, pointing investors into an ever-increasing realization that messaging has a lot of money-making potential. I guess we can throw Facebook into the mix now.
And all of this is just the beginning. There's no reason why Alibaba shouldn't continue its push to expand beyond the mainland in each of its areas. And that's what makes their IPO so much more tantalizing. No wonder it's looking to be the biggest IPO of all time.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.