Money Minute: China's Alibaba Files Massive IPO in U.S.

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You may not have heard of it yet, but it's the buzz of the tech world, and China's Alibaba is about to increase its profile -- big time.

The Chinese Internet giant has made it official, filing plans for an initial public offering in the U.S. It's expected to be one of the largest IPOs of all time. The trading debut is still months away, but the deal could value Alibaba at as much as $250 billion. The e-commerce company has hundreds of millions of customers, and handled $11 billion last year -- more than Amazon.com (AMZN) and eBay (EBAY) put together. And get used to hearing the name Jack Ma. He's the dynamic Internet tycoon who founded and runs the company.

There was a time long, long ago -- before the housing market collapse of 2008 -- that consumers would tap the equity in their homes to help finance other expenses. Now, those in need of cash are turning to their 401k retirement accounts. That's not necessarily good news because it can trigger tax penalties, and as Bloomberg reports, it reduces workers' retirement nest eggs, leaving them with even greater financial crises later on.

Here on Wall Street, the Dow Jones industrial average (^DJI) fell 129 points on Tuesday, the Standard & Poor's 500 index (^GPSC) lost 17, and the Nasdaq composite (^IXIC) slid 57 points.

Two stocks to watch are Electronic Arts (EA) and Activision Blizzard (ATVI), the leading makers of video games. Both posted better than expected earnings and offered an upbeat outlook for the year. They're being helped by the success of a new generation of video game consoles rolled out late last year -- Microsoft's (MSFT) Xbox One and Sony's PlayStation 4. Activision has high expectations for the latest version in its "World of Warcraft" series, while EA thinks the upcoming World Cup will give a big boost to its FIFA soccer games.

Finally, former Federal Reserve Chairman Ben Bernanke has a book deal worth at least $1 million. The Associated Press reports the book, due out next year, will focus on Bernanke's leadership in avoiding a world banking collapse at the start of the Great Recession.

-Produced by Drew Trachtenberg.


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23 Comments

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Dee

They sell defective products and don't accept the goods back or issue refunds. How's that for making millions?

May 08 2014 at 4:12 AM Report abuse rate up rate down Reply
antfern

They will pay the investors in bitcoins. They even start with a bubble of 2 billion in profits. I can sense this company is a big scam.

May 08 2014 at 2:23 AM Report abuse rate up rate down Reply
SPQR

I looked at their site and I would say it is worth about $25 share

May 07 2014 at 10:15 PM Report abuse rate up rate down Reply
militiaman2013

This is not the beginning of the end - This is the end if our Government allows the degenerates on Wall Street to take $250 Billion out of our 401k's and to fund this communist interest. This is the last opportunity the sheep will get to find a back bone, kill your 401k or bow to your new communist leader.

May 07 2014 at 7:57 PM Report abuse +1 rate up rate down Reply
thefacts22

The Regime is salivating,and will find any excuse to start "regulating" 401K ,s..Is not the first time Socialism/Marxism/communism seizes middle class money.I already spoke with my 401K,and told them NOT/NEVER invest in the Chinese garbage

May 07 2014 at 3:35 PM Report abuse +2 rate up rate down Reply
militiaman2013

Kill your 401k The Wall Street Goons are gonna use your 401k Dollars to buy this garbage and sell your future down the toilet.

May 07 2014 at 2:39 PM Report abuse +4 rate up rate down Reply
1 reply to militiaman2013's comment
thefacts22

The name says it all Ali Baba,and the 400 million thives

May 07 2014 at 3:41 PM Report abuse +1 rate up rate down Reply
1 reply to thefacts22's comment
SPQR

thieves

May 07 2014 at 10:16 PM Report abuse rate up rate down
Warrior

This thing needs to be nipped in the bud before it ever takes off...PERIOD ! I could care less about how much financial profit some people can make from what appears to be a benign, enterprising, business transaction. As a nation, it leaves us even more vulnerable to the ever increasing Chinese threats that are currently attacking us subtly, but will eventually attack us out right! We will only wind up paying higher taxes in the long run because of it...Well, at least for those of us who are still stupid enough to not use cleverly inserted loopholes in tax laws so we don't have to pay taxes.

May 07 2014 at 1:30 PM Report abuse +2 rate up rate down Reply
pfjw

Let's all send yet more money to China. And consider it to be a giant Ponzi scheme.

Alibaba makes great returns until the IPO is fully subscribed - then OOPS! All that "value" goes up in smoke - poof! Who ya gonna sue? Someone in China? Good luck with that!

May 07 2014 at 1:14 PM Report abuse rate up rate down Reply
SPQR

Ali Baba and the "forty thiefs"

May 07 2014 at 11:58 AM Report abuse +2 rate up rate down Reply
SPQR

Now China will own the internet! All thanks to Americans buying cheap Chinese crap ! Keep it coming!! Amazon will switch over immediatley to the Chinese internet because it is cheaper etc and so forth

May 07 2014 at 11:56 AM Report abuse +2 rate up rate down Reply
1 reply to SPQR's comment
esword2020

i just wonder how much stuff in ur house has a china stamped on it

May 07 2014 at 4:08 PM Report abuse rate up rate down Reply
1 reply to esword2020's comment
SPQR

unfortunately too much because I can't find anything made in America and let me tell you I look at all of it !!~!!!!

May 07 2014 at 10:18 PM Report abuse rate up rate down