Will Alibaba Trample eBay And Amazon?
InTheMoneyStocks.com | Sep 09, 2014 12:26AM ET
Last week, Chinese internet giant Alibaba Group Holding Ltd filed papers to become a publicly traded company in the U.S. The IPO is expected to be the largest deal in history. The company is expected to fetch over $20 billion from investors. Alibaba is expected to go public sometime this month.
U.S. consumers are going to become much more familiar with the Alibaba brand once this IPO is finalized. Right now, the U.S. consumer shops on Amazon.com (NASDAQ:AMZN) . Amazon.com stock topped out in January 2014, at $408.06 a share. Since that time, the stock has plunged to a low of $284.38, before rebounding to its current price of $343.94 a share.
Without question the Alibaba IPO is going to be a negative for Amazon.com and other major online retailers. Short term traders should note that Amazon.com stock will have major chart resistance around the $360.00 level. That resistance level represents an area where the stock is expected to move lower, or encounter an area of resistance from moving higher.
eBay Inc (NASDAQ:EBAY) is another major online company that could be adversely affected by the Alibaba IPO. After all, the name Alibaba comes from the fable Ali Baba and the 40 Thieves. You can be sure Alibaba will certainly steal some online business after this IPO is released.
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