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Alibaba could file for U.S. IPO on Monday

  • Alibaba Group (ABABA) could file the prospectus for its U.S. IPO on Monday, Reuters reports, adding that the listing could be worth over $16B.
  • The report comes after major shareholder Yahoo (YHOO) disclosed that Alibaba's Q4 net income surged 110% to $1.35B as revenue jumped 66% to $3.06B.
  • Alibaba's results helped Yahoo's shares climb 6.8% in AH trading. In Tokyo, shares in SoftBank (SFTBF), which owns 37% in Alibaba, jumped 8.5%.

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Comments (7)
  • pt560
    , contributor
    Comments (3) | Send Message
     
    Why does Softbank rise more on Alibaba's results than Yahoo? After all, SFTBF might have a larger stake in ABABA, but YHOO is more exposed to it, as its market-cap is less than half of Softbank's- 80B vs 35.
    16 Apr 2014, 07:23 AM Reply Like
  • Energysystems
    , contributor
    Comments (1270) | Send Message
     
    The $ABABA stake is not priced into $SFTBF at all. I believe Softbank owns 37%; of which post-IPO could be worth anywhere from 50-75B. Just look at the PE ratios for $YHOO and $SFTBF.
    16 Apr 2014, 08:18 AM Reply Like
  • pt560
    , contributor
    Comments (3) | Send Message
     
    Softbank was up 8,5% today after Yahoo's earnings, so I guess it must be priced somehow. The PE ratios also take into account that these companies operate in different sectors.
    16 Apr 2014, 09:08 AM Reply Like
  • Energysystems
    , contributor
    Comments (1270) | Send Message
     
    Softbank is deep into the same sectors as yahoo. They own a stake in many internet based entities, including yahoo japan, online retailers, etc etc. Very underpriced for the assets. imo, Softbank will be around $125 per share after the $ABABA ipo.
    16 Apr 2014, 02:30 PM Reply Like
  • buyandhold???
    , contributor
    Comments (907) | Send Message
     
    guess yhoo will see $50 very soon
    16 Apr 2014, 07:27 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5747) | Send Message
     
    "Alibaba's (ABABA) Q4 net income surged 110% to $1.35B as revenue jumped 66% to $3.06B."

     

    (AMZN) had Q4 revenue of $25 billion. Its market cap is $148 billion.
    16 Apr 2014, 08:02 PM Reply Like
  • eager1
    , contributor
    Comments (127) | Send Message
     
    Correct me if I am wrong but the way I understand it YHOO is obligated to sell much of its Alibaba stake at the IPO. That is why many believe YHOO has downside after the IPO.
    22 Apr 2014, 12:40 AM Reply Like
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