On March 25, Alibaba.com will be announcing more information regarding its upcoming IPO, one that has caught the eye of Wall Street in a big way. As the leading e-commerce website in China, the company offers services that have led many to compare it not just to Amazon.com (NASDAQ:AMZN) but to eBay (NASDAQ:EBAY) and PayPal as well.
On Tuesday's installment of Stock of the Day, host Mark Reeth and Motley Fool analyst Mike Finarelli take a look at the buzz around the upcoming Alibaba IPO and whether it's worth jumping into for investors. The company has exposure to the enormous and rapidly expanding market that is China, and the business of e-commerce is certainly hot. But the space is rapidly evolving, too, and it isn't necessarily clear just how the dust will settle.
In the video, Mike discusses some potential competition for Alibaba, and reminds investors that a great business does not always make a great investment. As with any highly anticipated IPO, it is important to keep in mind that buying in at the right price is ultimately the key to locking in great returns.