• Triton

Alibaba and the promise of marketplace companies

In an appearance today on Bloomberg TV, Triton's Rett Wallace discussed Alibaba's $11 billion dollar Hong Kong IPO. This second IPO, said Wallace, is a nod to its business model: "This is the promise of a marketplace company. You are supposed to have fantastic margins and growth. From a P&L perspective when you look at Alibaba, it's on its way to half a trillion dollars of revenue and is a gigantic company by any standard. When companies get to that size, they enter the 'mega-cap' category; disproportionately, a very small number of companies have most of the capital in tech land, which is sort of a huge unfair advantage. The law of big numbers [asks] 'how much bigger can the company actually get from a valuation perspective?'" Link to Rett Wallace on Bloomberg TV beginning at 19:40 - HERE