As Alibaba is raising $25 billion in an IPO, it’s become a very hot stock being chased by many investors. But CNN doesn’t think BABA is the best Chinese stock to invest in.
Alibaba is often described as the Chinese equivalent of Amazon, eBay, and PayPal and it’s gained more popularity since its roadshow in New York. Its co-founder and chairman, Jack Ma, is to become China’s richest man. But is it going to be the best Chinese stock? CNN doesn’t think so; it’s Baidu that on top of the mind recommended for investors:
And the best news for investors is that Baidu’s stock is still reasonably valued. Even though one share costs more than $200, Baidu trades at about 24 times 2015 earnings forecasts. That’s not dirt cheap but it doesn’t conjure up bad memories of the 2000 dot-com bubble either.
Baidu stock has surged 1,600% from its first day closing price! It has done better than Apple, Google and Amazon in the past nine years according to CNN.
Alibaba disclosed about three weeks ago that its net income nearly tripled to $2 billion in Q2 2014. Alibaba’s three China retail marketplaces, Taobao, Tmall and Juhuasuan, generated a combined GMV of RMB1,833 billion (US$296 billion) from 279 million active buyers and 8.5 million active sellers in the twelve months ended June 30, 2014.
Watch these videos to find out more about Alibaba’s giant online marketplaces.