Sep 19, 2014, 9:42 am EDT
It’s a wrap. The Alibaba (BABA) IPO ended the day up an impressive 38% to $93.89, giving the company a market cap of $231 billion on volume of a staggering 271 million.
The deal actually overshadowed what otherwise would’ve been news-leading items such as the failed vote for independence in Scotland, Larry Ellison’s move to step down as CEO of Oracle (ORCL) and the debut of Apple’s (AAPL) new iPhone.
After such a big day, the valuation on BABA stock looks awful pricey. The price-to-earnings multiple (based on fiscal 2014 earnings) is about 62x, but if you factor in the growth rate, things look more reasonable. For example, if net income increases at just half the rate of the past year, Alibaba would be trading at a forward P/E of about 33. Read
Sep 18, 2014, 10:20 am EDT
We’ve got a sports bar showdown on the horizon: Buffalo Wild Wings (BWLD) vs. soon-to-be-public Dave & Buster’s. And regardless of how you feel about either company’s chicken wings, there’s a lot of debate to be had about which company is a better investment.
Dave & Buster’s filed its S-1 registration statement with the SEC September 8 — its second attempt to go public since being taken private by Wellspring Capital Management in 2006. But the Dave & Buster’s IPO has stiff competition from BWLD stock, which has outpaced the S&P 500 by 10 percentage points in the past year.
So, you like the sports bar business model and you want to get a piece of the profits. Are you better off going with the streamlined sports bar experience offered by BWLD, or do Dave & Buster’s arcades give the company an edge? There’s no obvious answer, so let’s dig into the financials for each company to see which one is more compelling. Read
Sep 18, 2014, 9:30 am EDT
E-commerce giant Alibaba is slated to go public Friday, and the Alibaba IPO is expected to be one of the largest deals (if not the largest) in history.
That’s not really a surprise, considering the online retailer does more transaction volume than U.S. giants like eBay (EBAY) and Amazon (AMZN), and its success has even given struggling Yahoo (YHOO) shares a noticeable boost over the last year or so.
Lots of investors don’t know much about Alibaba, though, because comparisons and exaggerations are floating around everywhere. Many are even saying that Alibaba is like Amazon, eBay and Google (GOOG) all rolled into one because of its breadth of services. Read
Sep 16, 2014, 2:36 pm EDT
Weibo (WB), which operates a highly popular microblogging site in China, had a nice run lately, clocking 20%-plus returns last week. The biggest driver? Rumors that Alibaba — which is about to launch one of the world’s largest IPOs — could buy the company.
However, enthusiasm quickly fizzled, and most of those gains have disappeared right along with the buzz.
Has the market come to its senses … or has it presented an opportunity for investors to buy in at more reasonable prices? Read
Sep 15, 2014, 2:03 pm EDT
The summer break is over for the IPO market. And things will get off to a huge bang this week. On Friday, the Alibaba IPO will hit the markets, with the company expected to raise more than $24 billion.
But there will be six other new stocks to pull off their deals this week. No doubt, these are brave companies since they will get overshadowed by the Alibaba mega deal. But could that mean a hidden opportunity for investors — a great stock that gets overlooked by a mammoth IPO?
Let’s take a deeper look at these new stocks: Read
Sep 15, 2014, 12:35 pm EDT
When the Alibaba IPO finally hits public markets on Friday, Wall Street will be privy to one of the largest offerings (if not the biggest) in U.S. history. Shares in the Chinese e-commerce conglomerate (trading as BABA stock) are expected to raise more than $24 billion, which would represent more than half of the proceeds for all offerings this year!
At this point, the Alibaba IPO is the darling of Wall Street. Everyone knows about it. Many investors are thinking about it … and you might even be in their number. Read