A good example of reasoning by investing can serve as a company Alibaba. There is much talk about the overvaluation and bubble in the stock market, and it is an example of such a company is illustrative, and the generalized.
Of course, growth stocks are impressive: 40% in the first days of the IPO – it’s pretty great start. But investing in Alibaba, as they say in Odessa, doubtful gesheft. It is necessary to consider the risks. According to experts TeleTrade, first of all, we must note that this is a Chinese asset, and it entails and all the problems of China today. Optimists might argue that this is a very large company with a market capitalization of 7.5 billion. Dollars and 22,000 employees. But the threat is that Alibaba do not work on the accounting records, adopted in America, but in softer. In addition, China and legislation for the protection of investors is not as strict.
As a result, the company should be classified as a “hot cakes” from hayteka, and a segment that is highly overrated and, accordingly, is the first candidate for the collapse of the bubble.