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Stock Strategist

Alibaba Has a Long Runway for Growth

China's expanding middle class will give e-commerce a boost.

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Today's Stock Strategist continues Morningstar's initial assessment of Alibaba. Part 1 can be found here.

Following months of anticipation, Alibaba Group is now expected to price its initial public offering in early August. The company plans to list on the New York Stock Exchange under the ticker symbol BABA. Details about the offering's size have been limited, but multiple media reports suggest that the company is looking to sell a 12% stake with the offering. Our preliminary equity value for Alibaba is CNY 1,362 billion ($220 billion), which would equate to an offering of $26 billion and make it the largest IPO in U.S. history.

R.J. Hottovy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.