Monday, May 6, 2013

YHOO: Alibaba is aiming for a "more conservative...

9:16 AM Alibaba is aiming for a "more conservative valuation" for its IPO than the one Facebook obtained, so as to avoid a similar post-IPO flop, Bloomberg reports. That might mean a $100B IPO valuation is out of the picture, but even a $70B valuation would result in the e-commerce giant trading at 32x Morgan Stanley's 2013 earnings estimate of $2.18B. Nonetheless, given Alibaba's rapid growth (MS sees rev. growth of 59% in 2013 and 44% in 2014), that's something investors could be willing to stomach. YHOO -0.3%. (Reuters analysis) Read comments

YHOO price at time of publication: $25.07. Check YHOO price now »

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