Alibaba IPO Comes With 'Substantial' Risk: Luria

The video discusses the enthusiasm surrounding Alibaba's IPO, potential conflicts of interest, and the complexity of the company. It highlights the risks associated with investing in a Chinese company, including government influence and governance structure. The transition to mobile commerce is a challenge for Alibaba, but Jack Ma's leadership is seen as a positive factor. The video also covers Alibaba's history, including a previous IPO, and the structure of its businesses. Finally, it addresses investor perspectives, focusing on the involvement of institutional investors and the allocation of shares.

What is a potential conflict of interest mentioned in relation to Alibaba's IPO?

• Alibaba has no growth potential.

• Analysts are not excited about the deal.

• Wedbush Securities is leading the IPO.

• Banks involved in the deal are also providing analysis.

What is one of the main risks associated with investing in Alibaba?

• Jack Ma's lack of control over the company.

• The Chinese government's influence over the company.

• Alibaba's lack of profitability.

• Alibaba's focus on desktop sales only.

How is Alibaba planning to address the challenge of mobile commerce?

• By focusing solely on desktop sales.

• By figuring out how to charge the same fee on mobile as on desktop.

• By partnering with Tencent.

• By reducing fees for mobile sales.

What was a significant issue with Alibaba's previous IPO in 2007?

• It was highly successful and exceeded expectations.

• It was limited to the Alibaba.com platform, which is a smaller part of the business.

• It focused on Taobao and Tmall, the larger businesses.

• It was only available to US investors.

Why are institutional investors more involved in Alibaba's current IPO compared to retail investors?

• Retail investors have been heavily involved from the start.

• Alibaba has restricted allocations to large institutional investors.

• Retail investors are more familiar with Alibaba.

• Institutional investors are not interested in Alibaba.