A Big, Successful Chinese E-Commerce IPO … And It’s Not Alibaba!

May 22, 2014, 2:08 pm EDT
A Big, Successful Chinese E-Commerce IPO … And It’s Not Alibaba!

While most of the buzz concerning Chinese e-commerce players has been spent on the Alibaba IPO, the country’s No. 2, JD.com (JD), earned its own bit of spotlight as it launched an impressive offering today.

The JD.com IPO priced at $19 per share, which was a positive surprise above the expected price range of $16-to-$18. Moreover, Chinese Internet holding company Tencent (TCEHY) purchased $1.3 billion worth of shares. And in aftermarket performance, the JD.com IPO rose about 11% in morning trading. What’s Behind China’s No. 2?

If you don’t know much about JD.com, you’re probably not alone. For one, it’s an e-commerce player in China, so there’s little consumer awareness here in the states, and what interest anyone might take in the market has mostly been focused on Alibaba. Read 

7 New Stocks to Watch: JD.com to Test the IPO Market

May 19, 2014, 11:55 am EDT
7 New Stocks to Watch: JD.com to Test the IPO Market

With the selloff in tech stocks during the past couple months, the IPO market has certainly felt the impact. But last week, there were some signs that investors were getting more interested in deals. Just look at Zendesk (ZEN), which is a cloud provider of customer support tools. On its debut, the stock soared nearly 49%.

But as for this week, the IPO market will get a much bigger test: The offering of JD.com, which is China’s second largest ecommerce player. After all, the company is expected to raise more than $1.6 billion, and the market cap should exceed $22 billion. And yes, the deal will provide some clues about the appetite for upcoming Alibaba transaction.

So what about the rest of the IPOs for this week? Actually, it will be fairly busy, with seven new stocks on tap: Read 

Uber Revving Up, Could Be Worth $10 Billion

May 16, 2014, 1:42 pm EDT
Uber Revving Up, Could Be Worth $10 Billion

Uber, the fast-growing mobile car-booking service, reportedly is negotiations for a mega-round of capital that could value the company at more than $10 billion.

So, how fast is fast-growing? Well, Uber’s last round of funding came earlier this year, and investors — including TPG Capital, Google (GOOG) Ventures, Benchmark Capital, Goldman Sachs (GS) and even Amazon.com’s (AMZN) Jeff Bezos — ponied up $258 million at a valuation of just $3.5 billion.

Is this just more Silicon Valley silliness, or can we begin comparing Uber to the Facebook’s (FB) of the world? Read 

Alibaba IPO Is Going to Kill the IPO Market

May 15, 2014, 11:32 am EDT
Alibaba IPO Is Going to Kill the IPO Market

Alibaba, the massive Chinese-based ecommerce operator, could be the largest IPO ever. Some analysts believe the company could raise more than $20 billion with the Alibaba IPO. That would dethrone the current No. 1 IPO, Visa (V), which pulled in a haul of $17.8 billion back in 2008.

Despite this massive size, the Alibaba IPO may be bad news — that is, the deal may actually derail new stock offerings for some time — especially for tech transactions.

The reason is pretty straightforward. The fact is that the Alibaba IPO will suck a huge amount of capital out of the financial system that could have been available for other new stock transactions. Just look at what happened with the Facebook (FB) IPO in May 2012: Read 

Should I Buy Tesla Stock? 3 Pros, 3 Cons

May 14, 2014, 1:26 pm EDT
Should I Buy Tesla Stock? 3 Pros, 3 Cons

Until late last year, the stock of Tesla Motors (TSLA) seemed to only know one direction: Up. But after two corrections — one late last year, and the current funk in Tesla stock dating back to early March — the momentum has greatly shifted to the downside.

Tesla’s first-quarter earnings are a big driver of the decline. While it was solid, it wasn’t a blow-out — and when you’re a big, growthy momentum company, that’s what your shareholders crave.

Tepid guidance for vehicle deliveries weighed on Tesla stock as well. For Q2, the company put out a forecast of 7,500 units, which was below the analysts’ estimate of 7,827 units. Read 

8 New Stocks to Watch: Zendesk on Deck

May 12, 2014, 11:35 am EDT
8 New Stocks to Watch: Zendesk on Deck

Last week, the market for new stocks showed signs of life. Although, much of the strength was for low-risk, dividend-paying operators like PBF Logistics (PBFX) and GasLog (GLOG).

But will the growth companies get back on track too? Well, we should find out soon. This week, cloud company Zendesk will launch its IPO — and the deal will certainly be a good barometer for Wall Street’s tolerance for riskier investments.

Actually, the week will be quite busy, with eight new stocks on tap. So let’s take a look at each: Read 

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