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How Much Could You Have Made Investing in Alibaba?

Last Updated April 30th 2019

If you have read our previous article about Amazon and the enormous amount of money that some people have made trading with its shares, you would know that this American company is among the largest companies in the world in terms of total sales. But surely every chart has its leader who stays on the top of it. In this one it is Alibaba (fully named Alibaba Group Holding Limited).

In April 2016 it became the world’s most valuable retailer surpassing other American well-established companies – Walmart, eBay, Amazon - with operations in over 200 countries.

The company was found in 1999 in Hangzhou, China, but it was not until September 2014 when they - in a regulatory filing with the US Securities and Exchange Commission—set a $ 60 to $ 66- per-share price range for its scheduled initial public offering (IPO). On 18 September 2014, Alibaba's IPO priced at $68, raising $25 billion for the company and investors. This debut at the New York Stock Exchange launched it into records as the largest IPO ever.

Alibaba Group’s three primary businesses are arranged as distinct companies:

  1. Alibaba.com is the company’s original business. It is a trading platform linking Chinese businesses to international businesses that need Chinese inventory or manufacturers.
  2. Taobao is Alibaba Group’s largest business. It is a consumer-to-consumer marketplace similar to com. Unlike eBay, Taobao does not charge a commission on transactions. Instead, it makes money by selling ads (like Google).
  3. Tmall.com spun off from Taobao as a premium business-to-consumer marketplace aimed at the growing middle class. It features higher-end, international brands and charges its merchants just small yearly fees.

So in November 2017, Alibaba stock is traded for approximately $ 190 which is three times bigger than the priced they listed when they went public. And that was just some 3 years ago and during this time frame the price has been even lower than the one Alibaba debuted with. And for enterprising and smart people, traders who are well informed and aware of the significant things happening in the world and its economy, it hasn’t been that hard to foresee the expand of Chinese economy and China itself. Therefore the decision to invest in a rising Chinese company has crossed a lot of traders’ minds. Everything you have invested when realising the winning circumstances in this growing company, would be worth three times more now. And again, it all comes to the motivation to get introduced to the trading industry because there are countless opportunities out there, investments to be made and profits to be taken.

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