Alibaba Still Has a Lot of Growth Potential: Blair

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May 7 (Bloomberg) -- Rosenblatt Securities' Brian Blair, SocialRadar CEO Michael Chasen and Bloomberg's Leslie Picker discuss Alibaba's landmark IPO filing, growth potential and governance challenges. They speak with Betty Liu on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Raise 20 billion?

It looks that way.

It's according to analysts comprised by bloomberg.

We are told they are about to sell a 12% stake.

It could be upwards of $20 billion.

Who has doubts?

No doubts.

I don't think there are a lot of doubts about what alibaba can do.

This is a first glimpse into chinese e-commerce, and we are getting a glimpse of how big it is, but there is still a long way to go.

One of the best indications is the mobile side.

They have five hundred million mobile users in china.

There is still a lot of runway.

A big potential.

You took your company public in 2004. in addition to the fact that only a small percent of users are on mobile now, just over half the population in china is on the internet.

You are going to see huge growth has the other half of the population starts coming on board and using alibaba services.

Today we saw tech stocks take a huge hit.

Maybe the timing is not right.

What went on was a couple of small factors playing into the market, such as a lot of twitter insiders adding their shares taken off restrictions.

One or two pieces of small news.

I think this is a minor market correction, but when you look at the amount of interest in ipos and the tech sectors not only from the united states but for outside, i think there is a huge appetite.

This is going to do really well.

Some companies are going to delay their ipos.

We really have not seen anything like this in text.

This is the first of its kind, and i think the global market will have an appetite for this.

You have a company coming to the public market showing there are other big markets that have that sort of scale.

It's a strong difference.

We have seen some chinese internet companies come to the market.

Wave oh is not doing so well.

We saw the market for chinese ipos in the u.s. we have seen a record number come to the u.s.. at the most since 2007 in terms of issuance.

The ones that came out recently have been affected by the performance of ipos in general.

We are seeing another one come out this week.

We will find out tonight.

This is really like if you take amazon and ebay and paypal, combine it as one company, and you are leveraging the entire chinese population.

On top of that there are other potential avenues of growth like media.

It is another potential avenue for them.

We had a guest who is taking a much more bearish view on this.

He says alibaba is great for the company, but i'm not sure about foreign investors.

There is still a lot of growth to go in china.

The growth story is clear, but is it a positive proposition for foreign investors who may not have as much say over this company, who are not as familiar with the regulatory environment in china?

That's what people are talking about.

When you see these companies go to u.s. markets instead of the hong kong market.

They have stricter regulations.

With alibaba they basically turned them down.

They said we don't like internal evidence.

Alibaba says it is to control their culture and vision, but they are treating this large organization like a closely held organization.

Is that a bad thing?

I think in this day and age when you have got to be so flexible it's going to be a benefit.

That's one reason they chose that market instead of the hong kong market.

Investors will have to get comfortable with a few of the structural things.

Jack mata owns a lot of alley-oop a -- of ali pay.

They are talking about the variable interest entity, that means if investors don't really own alibaba direct.

Maybe i am just dance.

I want to know why this is a risk.

The structure makes it so chinese companies can list in the u.s. in certain industries.

That's common in internet, which is why alibaba fits in that category.

They create this entity between investors and the actual company.

You are not directly investing in the company.

You are investing in the contract which can be revoked.

If the cayman islands holding groups, which we see, so it's not that foreign.

There is rule of law.

There is rule of law.

There is questionable legality over this in china.

There is precedent.

It has worked.

There hasn't been an issue so

This text has been automatically generated. It may not be 100% accurate.


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