As expected by many, Alibaba Group Holding Ltd (NYSE:BABA) had a successful first day of trading in US. Alibaba stock price increased by a staggering 38% on the first day of trading, from its initial IPO price of $68 per share. Meanwhile, Jim Cramer talked on CNBC about his views on Alibaba stock after their very successful first day in US.
Alibaba Group Holding Ltd (NYSE:BABA) stock started trading at $92.7 per share on Friday, raised to a maximum of $99.7 and finally settled at $93.89 at end of the first trading day. Nearly 271 million Alibaba shares were traded on the first day.
“I think Alibaba is not crazily expensive and while prefer to own both Facebook and Google here, I can’t dismiss either Jack Ma or the enterprise he has built as overvalued,” Cramer said about Alibaba share price.
Cramer thinks that the share pricing set on Alibaba Group Holding Ltd (NYSE:BABA) was not overvalued and he thinks that Jack Ma’s Alibaba is a great success story in America. Cramer also talked about few other stock and his opinion on them. Cramer recommended the investors to own Yahoo! Inc. (NASDAQ:YHOO) shares. He mentioned that there is a huge cash influx into the company from the Alibaba IPO.
Cramer also gave thumbs up for First Niagara Financial Group Inc. (NASDAQ:FNFG). FNFG share price is at $8 per share and Cramer feels that this share is too cheap. Cramer also gave thumbs up for the idea of Staples, Inc. (NASDAQ:SPLS) merger with Office Depot Inc (NYSE:ODP), which could boost both the company profits and revenues.
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