NEW YORK, September 19, 2014 − After a frantic morning of jockeying, Alibaba’s much-anticipated IPO opened as if it were rocket propelled, soaring 35 percent to $92.70 from its IPO price of $68. Demand has been tremendous thus far, although it is difficult to guess where the stock may close today, given the potential overhang of shares some insiders are permitted to sell. That’s unusual in an IPO where most insider shares are “locked up” for 180-360 days.
Contrarian investors are currently bidding Yahoo! shares (YHOO) and options down, apparently betting Alibaba shares (BABA) have already peaked. This is likely to reverse.
Reportedly, hundreds of thousands of shares are queued up for trading. As of this writing, shares are up even more, trading as high as $95 and change.
We’ll provide you with an update later today if and when things settle down a bit for this hot new issue and allied trades.Click here for reuse options!
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