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Ali Baba American IPO...good or bad for our economy?

Discussion in 'Off Topic [BG]' started by nukes_da_bass, Mar 16, 2014.

  1. nukes_da_bass

    nukes_da_bass Banned

    Feb 19, 2006
    west suburban boston
    AliBaba is about to launch its American IPO. They hope to raise over 20 billion dollars in funds.whats the rub for the economy in USA, good or bad?
  2. pacojas

    pacojas "FYYA BUN"

    Oct 11, 2009
    it's an intergalactic community! no worries. ;)
  3. If it means lower prices on their goods, prepare for Etsy stores to start selling a lot more useless crap.
  4. tastybasslines

    tastybasslines Banned

    May 9, 2010
    Los Angeles, CA
    What exactly is it? I thought it was like the Chinese Ebay.
  5. Sponsored by:

  6. They're a distribution company for wholesalers and manufacturers. Like eBay, just no bidding and in quantity I guess.
  7. fisticuffs


    May 3, 2011
    Madison, WI
    The race to the bottom is bad for the economy. Seems like AliBaba fits that mold. Does their entry into the stock market make any difference?
  8. 1958Bassman


    Oct 20, 2007
    We have enough Chinese stuff coming in- we need to make more products here. Not trying to sound isolationist, but we have far too many people needing jobs and a life- being a warehouse worker isn't going to do it for them and I would suspect the warehouses would be automated, anyway.
  9. nukes_da_bass

    nukes_da_bass Banned

    Feb 19, 2006
    west suburban boston
    I don't think having an American publicly traded corporation requires anything more than an office in america, a few board execs with American adresses, and an American bank account.
    What makes you think that there will be one warehouse on American soil?
    My take on this is its simply an act to raise western world capital. Nothing more, nothing less.
    It's not like the SEC is fantastic at policing corporations for ethics or tangiblity.
    fraublugher likes this.
  10. bkbirge


    Jun 25, 2000
    Houston, TX
    Endorsing Artist: Steak n Shake
    I think it's great. Time to short. This has tank written all over it.
  11. OldDog52


    Jan 1, 2011
    The few times I've shopped their website, they required that I order like 500 of something I only want 5 of. Bah.
  12. nukes_da_bass

    nukes_da_bass Banned

    Feb 19, 2006
    west suburban boston
    Keep in mind- everything this company has ever done has turned to gold. Amazon . com is marginally profitable...whereas AliBaba is extremely profitable.
  13. superHEAVYfunk


    Mar 11, 2013
    The public trading of a foreign company in american stock markets has no effect on the job market in the US. Alibaba employs ppl in the same way that amazon or ebay does... That is to say, basically IT folks and maybe some warehouse workers, if they do in fact do any distribution of their own.

    What americans (and other nations) need to do, if they're truly concerned about having jobs in their own land, is to stop focusing on profits at the expense of their own people; stop sending the work overseas in order to pad the margins.

    ...But good luck with that.
    fraublugher and edpal like this.
  14. Stewie26

    Stewie26 Gold Supporting Member

    I thought the owner of Amazon went from a garage business to a billionaire. That sounds like a lot profit to me.
    Last edited: May 9, 2014
  15. tastybasslines

    tastybasslines Banned

    May 9, 2010
    Los Angeles, CA
    IF, you can trust Chinese accounting.
  16. tangentmusic

    tangentmusic A figment of our exaggeration

    Aug 17, 2007
    Way Out West
    Aliexpress - a division of Alibaba - is where all the counterfeit "Fenders", "Gibsons" and "Rickenbackers" come from. Buy whatever and from whoever you want, but don't try to pass it off as the genuine article.
  17. bmc


    Nov 15, 2003
    I think there's more to it than that. I think that a consumer driven society focuses so much on low prices that once the cost of production and distribution is factored in, it's unprofitable. Hence, looking for really cheap labour.
    fraublugher likes this.
  18. bmc


    Nov 15, 2003
    The Chinese are very adept at what they do. Don't fool yourself.
  19. tastybasslines

    tastybasslines Banned

    May 9, 2010
    Los Angeles, CA
    It not that I don't trust their calculating ability - its that Chinese companies are notorious for coming up with "creative accounting" to boost the bottom line. I'm not saying that Ali-Baba would or does, but Chinese pump and dump IPO's based upon creative accounting have been going on in the US for years.
  20. superHEAVYfunk


    Mar 11, 2013
    You're definitely right about that. There are a lot of moving pieces in these types of equations and we've only toiched on a couple of them.

    Everybody wants something for nothing (or as close to, as makes no difference) and i doubt that most consumers would be happy to pay an additional $500 - $1000 for the average bass guitar just to have the peace of mind in knowing that it was made in america.
  21. ChrisB2

    ChrisB2 Bass... in your fass

    Feb 27, 2008
    TalkBass > Off Topic
    This thread makes me want to buy something online.....

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