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Alibaba who?

Tuesday, September 16, 2014 - 02:03

Alibaba may be well known on Wall Street ahead of its market debut, but a new poll shows 88 percent of Americans don't know who the e-commerce company is, a challenge it will have to overcome. Sasha Salama reports.

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Even though Alibaba's upcoming launch has gotten a lot of buzz on Wall Street, it's still got a challenge regarding its name recognition on Main Street. Some financial advisors say that, alone, is one of a few good reasons not to sell or trim your holdings in some of the big, US e-commerce companies just because Alibaba is coming. Jeffrey Sica of Sica Wealth Management: SOUNDBITE: JEFFREY SICA, PRESIDENT, SICA WEALTH MANAGEMENT (ENGLISH) SAYING: "It's interesting how few people know who Alibaba is. Everyone knows Amazon, everybody knows Ebay, few people know Alibaba." Analysts also point to the fact that the big, US e-commerce companies have "first player" advantage in the US market compared to Alibaba. Tuna Amobi of S&P Capital IQ: SOUNDBITE: TUNA AMOBI, DIRECTOR OF MEDIA AND ENTERTAINMENT EQUITY RESEARCH, S&P CAPITAL IQ, SAYING: "No one is predicting, including us, that Alibaba is going to come in and eat the lunch of these established players." REPORTER STAND UP: SASHA SALAMA, REUTERS (ENGLISH) SAYING: "Alibaba is going public here on the New York Stock Exchange, the biggest and most visible stock market in the world. Most analysts agree building market share here in the US will definitely be a challenge for Alibaba, one that will take time and, probably, result in some acquisitions." Another reason for investors to take pause when it comes to the upcoming Alibaba IPO: there have been some questions about Alibaba's reliability when it comes to quality control. SOUNDBITE: JEFFREY SICA, PRESIDENT, SICA WEALTH MANAGEMENT (ENGLISH) SAYING: "There are billions and billions of dollars of counterfeit transactions happening on Alibaba. And if it happens in the US, Amazon can capitalize on that by saying we are controlling our distribution. You can trust the products you buy from Amazon. You're not able to always trust the products from Alibaba." So for investors with some exposure already to US e-commerce companies, many advisors say don't make any drastic moves and consider several factors before even thinking about shifting your money into Alibaba just because of its size.

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Alibaba who?

Tuesday, September 16, 2014 - 02:03