David Garrity, principal at GVA Research, says about 80% of companies that went public at the peak of the so-called tech bubble in March, 2000 were unprofitable; now that number is 75%, which he says sends a warning signal to investors to be very selective. Garrity says post-IPO valuation forecasts for Alibaba are in the range of $150 billion, which means institutional investors are likely to have to sell some other technology positions to participate. Alibaba, Chin’s largest e-commerce company, is planning what could be the biggest U.S. public debut ever. Garrity speaks with Bloomberg’s Kathleen Hays and Vonnie Quinn on Bloomberg Radio’s "The Hays Advantage”.
Running time 16:00