Alibaba Group Holding Ltd (NYSE:BABA) is trying to avoid the blunder that was the Facebook Inc (NASDAQ:FB) initial public offering, CNBC’s Closing Bell hosts discussed.
Part of the things Alibaba Group Holding Ltd (NYSE:BABA) is ensuring so that they will not repeat Facebook Inc (NASDAQ:FB)’s mistakes is that the market can handle the sheer volume their listing on the New York Stock Exchange, CNBC Senior Writer John Jannarone said in the segment.
However, he did note that the NASDAQ exchange where Facebook Inc (NASDAQ:FB) is not all run by computers and systems as most people have the impression of. NASDAQ now has people ensuring that the listing of new companies run smoothly, the senior writer said, adding that the same thing is being done by the New York Stock Exchange where Alibaba Group Holding Ltd (NYSE:BABA) is expected to debut this month.
About the decline of Facebook Inc (NASDAQ:FB) in the months right after its market debut, Jannarone said that Alibaba Group Holding Ltd (NYSE:BABA) may not suffer the same fate since people now know that the company can make a lot of money on mobile. Mobile revenue which has increased dramatically for the world’s largest social network is seen as one of the key drivers to why the company has rallied in the stock market.
Meanwhile, Kayla Tausche had advice for potential Alibaba Group Holding Ltd (NYSE:BABA) investors. She said that people who invest in these large capital companies during their initial public offerings need to be committed to the companies and not just looking at a quick trade for profit.
Facebook Inc (NASDAQ:FB) investors includes Karthik Sarma’s Srs Investment Management which reported 5 million shares in the social networking giant by the end of the second quarter of the year.
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