Is Alibaba Worth the Price Tag?

The video discusses the dynamics of Chinese IPOs in the US, highlighting a significant average increase over the last decade. It explores investor behavior, particularly the role of US institutions and retail investors, and the impact on market prices. The peculiar corporate structure of Alibaba, involving a VIE in the Cayman Islands, is examined, along with the associated risks for investors. The video concludes with investment strategies and a comparison to past market trends, emphasizing the importance of established revenue streams.

What was the average increase for Chinese IPOs in the US over the last decade?

• 38%

• 19%

• 25%

• 45%

Which major US institution was mentioned as having an interest in the Chinese online market?

• Morgan Stanley

• Black Rock

• Goldman Sachs

• JP Morgan

What is the nature of the corporate structure that Alibaba uses?

• Joint venture with a European firm

• Direct ownership in China

• VIE structure in the Cayman Islands

• Partnership with a US company

What is a potential risk for investors in Alibaba due to its corporate structure?

• Currency fluctuations

• Lack of shareholder rights

• Limited market access

• High taxation

What is advised before investing in Alibaba shares?

• Investing in a competitor

• Buying through a mutual fund

• Waiting for price stabilization

• Immediate purchase