Tags: Cramer | IPO | Alibaba | growth

Jim Cramer: Bet the Farm on Alibaba

By    |   Thursday, 17 April 2014 10:20 AM

CNBC commentator Jim Cramer apparently is impressed with Alibaba, the Chinese company that has been described as a combination of Amazon, eBay, PayPal and Google.

The company plans to sign up for an initial public offering (IPO) on an American exchange as soon as next week.

"I want to own Alibaba," Cramer proclaims. "If I was a growth manager, I would sell every single stock and buy Alibaba."

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Yahoo owns a 24 percent stake in Alibaba and provided some details about the Chinese company when the U.S. company reported earnings this week.

Alibaba registered $1.4 billion of profit for the fourth quarter, surging more than 100 percent from a year earlier, and revenue soared 66 percent to $3.06 billion.

"Why wait when you have 66 percent growth?" Cramer asks. "I was looking for 55. A lot of people were looking for 51 [percent].

"I cannot believe that acceleration. Who accelerates? And this is China we're talking about."

Some analysts believe Alibaba's IPO could value the company as high as $200 billion, which may make it the largest IPO in U.S. history, The New York Times reports.

Cramer isn't the only one enthusiastic about the Chinese giant's earnings performance.

"These were pretty spectacular results, and they should assuage any fears around a slowdown," Ben Schachter, an analyst at Macquarie Securities, tells The Times. "It's a reminder of what kind of growth story this is."

He anticipates a valuation of at least $160 billion for Alibaba at its IPO.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now

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InvestingAnalysis
CNBC commentator Jim Cramer apparently is impressed with Alibaba, the Chinese company that has been described as a combination of Amazon, eBay, PayPal and Google.
Cramer, IPO, Alibaba, growth
271
2014-20-17
Thursday, 17 April 2014 10:20 AM
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