The Chinese giant Alibaba acquired its place on Wall Street with a hike of 38% of its shares as a public company. It has made the largest ever public offer throughout the world with its IPO shares priced at $68 on Thursday night. Investors demanded for moving faster and overtake the price when they started trading on Friday. Finally the price of the shares became $92.70.
The shares projected above $99 with a short time, it hovered around the opening price throughout the day. Market capital gained $230 billion when Alibaba closed at $93.89. Alibaba is now ahead of any Technology related company and increased its value almost after Apple, Google and Microsoft.
Jack Ma expressed his excitement in saying that he felt honoured and humbled because people of the world favoured him a lot with reliability. Alibaba is known to the world as Amazon of China. It has the similar functionality with Google and eBay. Alibaba is such a platform where small and large vendors trade their products and services to customers. It earns profits by selling Ads like Google and through charges on transactions, just like eBay does.
With this simple business model, Alibaba did almost 80% of the total online sale in China with $248 billion in retail transactions in the year 2013. The company earned $2 billion as profit in recent three months, which is greater than the amount earned by Amazon and eBay combined.
Jack Ma told that his company would focus its business on foreign shores. Somebody said that competition with Amazon and eBay would be much tougher for Alibaba. Mr Hottovy told that it would be harder in North America with a shallow recess. Alibaba is still more to develop its business in China with more than 200 million active users, but in these days, Alibaba is appearing in the lounge of riches.