call up the ali baba effect. stocks that look like the upcoming ipo in some way, shape or form are getting hammered. i have a stock that's been cut in half. but maybe it's too cheap to ignore. find out if you should get in before it gets taken out. whoa, don't miss my review a. company behind a new security maish that helps counterfeiting world wide and ali baba could soon be over. i am sorting through the rubble to find the stocks that could be bought. stay with me. it's cramer. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free a

you are not jumping on the ali baba bandwagon. ali baba bandwagon. >> no, i am not.tuart: illegal? >> investors are by and to. it is illegal. jack moss himself said he was a legal when he got yahoo! out of their version of paypal. making sure that yahoo! got turfed out of its own company. two big internet versions and china. that is going to be a problem. the other thing, of course, is that commerce is struggling and china. stuart: you cannot do much in china without that coming up. >> and impressive individual. you have to give it to him. if those -- we have seen this story before with other successful entrepreneurs. >> western companies are under investigation and china just as ali baba comes and goes public. glascow was found guilty of bribery. china comes here, raises money here and over there, investigating western companies. what do you make of that? >> powerful political enterprises are taking it away from them. where is it listing? it is not listing and china. it is not listing in hong kong. it is coming to china. stuart: it could go for $88-$90 per share. it

you should love, not hate, but love ali baba. even ali baba opens at $8 a share. could still be a -- buy, buy, buy! it may be a buy even a couple points north of that, given it would given advisors who got in on the deal a bended average. that's how they think. because i thought the stock might be priced as high as 70. the fact that there was no last minute bump-up in price is a huge win for the buyers. how did i come to what some people think is a silicon collusion this stock is as cheap as all get out? okay. let me explain why you should stop worrying and learn to love ali baba. the first objection, of course, valuation. oh, wouldn't it be ridiculously expensive at $80 bucks? >> no. in you stack it up you'd find at $80 a share it's cheap. mabry dicklously cheap, given the growth rate and profitability. i think the company can earn $2.50 a share. that's well within reason, so at $80 bucks where i think the stock could trade. it could have a price multiple of 32. that's cheap. i expect it to generate 30% quote for the next few years. remember, ali baba is no joke.

ali baba and the 40 thieves.t sounds good, because it means he is savvy in business. >> he is, indeed. this is a company he started with evan teen cofounders -- 17 cofounders in his apartment building in 1999. there is home video of him, they thought they were making history. they shot speeches he made in their living room, that alibaba would someday take over the world. world's it is the largest e-commerce company because of all the business that filters through alibaba. >> i know you were looking on youtr mobile, and it had to do with sap. cory johnson, you have been getting details about sap. tell us about acquisitions. concur, al buy seattle-based company for travel management software, known for the tripit software they bought. they have travel management software, with oracle looking across at the relative success of companies like salesforce. concur, and other small software service companies focusing on travel, acquired for $8.3 billion by sap. sap, a longtime competitor to oracle, trying to move more int

he then recruited 17 partners and ali baba was born. his larger-than-life personality has helped ali baba turn into the commerce giant it is today. he sings and performs mass weddings for employees during our party events. he is a huge fan of kung fu and started a tai chi school with actor jet li. chinese philosophers at meetings and his own has helped build his personal fortune. man. now china'sali riches but for ma, it is not just about the money. he told charlie rose that, if microsoft orrpass walmart, he would regret it for the rest of his life. porter joined alibaba in 2000 as the company was moving out of jack ma's small apartment. he worked with him as head of documentation from us to years. i started by asking what the founders were really like in those early days. >> they were just as ambitious and as big a dreamer as any silicon valley startup. at the time, i think people thought this was teacher who was making bold claims about where the internet would go, where alibaba would go, there were a lot of skeptics obviously. thethe

and alley bab baba -- ali baba madness. and we'll start the week right, let's go make some money. charles: i am charles payne welcome to "making money." that is what we do every day. we-you make money by investing in the market, managing your portfolio, we call the real-real deal. we go beyond headlines. everyone gets the headlines. we know how to find out how to make you money from them. here to help our investment pros, hitha, fashion week darling. >> hectic but fun. charles: matt mccall? another new suit. >> no, oldy but good sno. charles: tracy, you look fresh as a daisy. >> thank you. charles: hillary cramer is back with us. and our friend danny hughes from divine capital. let's look to our first real-real deal, last week we learned an issue that americans are not economic. over 70% told gallup, noneconomic issues are visitly more important -- vastly more important. last friday, i posted this cartoon. i put this o twitter, people hae gone nuts, funny in a funny way and sad way, reposted a million times. this week we get anniversary of 9/11. but the day before we hear from pre

we did want to talk about ali baba. the road show moves to boston after kicking off in new york city yesterday. here is founder jack moss spotted after his speech to investors. and then we'll get back to kayla with the latest. >> i love these events because you feel like a paparazzi. but i think it's fitting we move from apple to ali baba. the one comparison that emerged in a big way after yesterday's event was this comparison between the founder of ali baba and apple's steve jobs. on one hand, brill yacht. on the other hand, impulsive. it's that impulsive nature that is one concern of investors. profile in the "new york times" over the weekend described in detail a sdegs by jack ma to disregard its board and investors. he was not happy with yahoo! and some of the development of their relationship, so he decided to move a fast growing pavement arm of ali baba into an entity that he controlled. he actually addressed that yesterday unprompted. he said, look, this proved to be the right decision and i think that you will s

you covered ali baba for years.blems of transparency but if you put it in the context of other countries, -- >> this is business as usual. i think ali baba looks good. the premium you will be paying is jack. you are buying into his vision. he wants to transform the chinese company and take it on to a global sphere. >> could one make an argument that if you like amazon, you should love alibaba? >> i think so. isthink the ali baba model superior to the amazon model. there are questions, have they ever made money and generated cash? you look at ali baba's model, where they have taken out an they have model and all the merchants in china buying -- vying for product placement. that allows them to continually raise price and allows them to generate huge margins. if you look at amazon, we are always taking a cut of every sale. that is a low margin business, capital intensive. it does not generate a lot of cash. on the flipside, ali baba is generating a huge amount of cash. you should love alibaba because the model is that

so much as happened between oracle and apple and ali baba.umber is 32. 32 technology ipo's pending, twice as many than a year ago at this time. 157% more. they are looking to strike while the iron is shot. chokeure the market can't town more tech stock. -- down more tech stock. >> anything you have your eye on? >> there is so much in numbers terms. in terms of the underpricing and issue.isis -- you about what they wanted to do and why. left moneydefinitely on the table. . for watching. have a wonderful weekend. ♪ . . >> this is taking stock. i am pimm fox. today's theme is historic. historicresh off a initial public offering. u.s.s surged in its trading debut. its founder jack ma turned the $60 dream into a stock valued

has a quarter of ali baba and would do well. we quote ali baba and we quote yahoo! there will be a lot of volatility i think it may go straight up or straight down or all over the place. would you be done buying on day one? >> i think i would. there will be so much momentum, this will be so overbought. one survey had a large number money managers who have $400 billion, half of them already committed so that is a lot of buying power. most of the guys i am talking to are all in. there will be tremendous initial interest and beyond that ali baba will get itself into the major index, the s&p, that will add momentum. stuart: interesting stuff. we are going to watch this thing very closely. on friday joline kent, jack ma on "the opening bell" at 9:00 a.m. eastern friday. that would be ali baba, ip 0 day. can. money talks and nfl's biggest sponsors not have the demanding stronger action for the nfl. last hour we spoke with fox sports 1 nfl insider peter trader. here is his take. >> money is talking but is money acting? for budweiser and anheuser-busch to make this statemen

. ♪ >> the ali baba story.nder one set ebay is a shark in the ocean, we are a crocodile in the river. if we fight in the ocean we will lose but if we fight in the river we will win. you inside the ali baba group to find out how this ,ompany, founded by 18 people has grown into a global e-commerce phenomenon with a profit that is bigger than amazon and ebay combined. we want to start by looking at the many is this is this is of the alibaba group. alibaba's revenue comes from consumer sites. it all started with alibaba.com. how does ali baba work and is the profit similar to buying something on amazon? he joins us now with more. i know you like your pants. >> i really wanted a lot of them. was to i could do that order them from a manufacturer who uses alibaba.com. of the entiresis alibaba.com system, connecting buyers all around the world with an equal number of manufacturers around the world to give them what they want. >> to reach those manufacturers i had to create a buying request, a form that describes what

the next google, ali baba will say google is the next ali baba.ou imply that takes off a couple years from now because google did take off. >> is a huge market outside the u.s.. i said before many times on your show the rest of the world is the market. stuart: thanks very much. the rest of the show, the rest of this hour, first of the nfl scandal, another player arrested for domestic violence overnight, major sponsors issuing strongly worded statements, got all of that, money is talking but not walking. money is staying in football. we have an nfl insider on that next. scotland happening right now voting on independence, one major media executive says no matter what the outcome the united kingdom has been changed forever. still relief for the california drought, reservoirs drying up entire towns out of water. i say the environmentalists have a share of the blame for this. an exoskeleton, paralyzed people walk again. great stuff, you got it here. you will see it, live demonstration of the studio have an hour away. stuart: a whole bunch of names lik

can you give us a flavor of the ali baba buying frenzy? >> things now in afternoon trading have calmed down a little bit. on the trading floor, everything is pretty much back to normal, but a couple hours ago, it was a circus here. traders were working for more than two hours. we have heard it before. the opening price of the ipo, priced at $60, but of course stocks were never available at that level. the stock opened at $92 and shut off quickly to a high of $99 70 cents, just $.30 away from $100. and while the stock was not able to hold that mark, it is trading relatively stable between $90 and $92. we have it at $91.69, which is up 35%. jack ma, the ceo, left the trading floor with a big smile, because his net worth obviously climbed immensely. today his net worth is just about $20 billion. >> let's talk about jack ma and ali baba for a second. is this a one-off, or will we see more of this in china for all growing tech sect or? >> certainly we will see more. this was not the first chinese ipo to begin with. it was the biggest and it was

after ali baba than they had. some of the parts even without taxi fish yun tax efficiency. >> what starboard is saying is 5662 on the stock. that's a huge up side. >> we talked about a move potentially to 45. it got to 44. the pullback was on ridiculous volume. it traded almost half a billion shares and we talked about that being the flush. it feels like it wants to repeat. i i am not convinced 50 is in play. >> unusual activity in case you missed out. action investors will have another chance to trade the chinese e-commerce company whether it debuts its stock options on monday. what are we watching for. what shall we expect? >> what you can expect is something close to facebook. >> 365,000 contracts traded the day facebook did list the options. a lot had to do with the fact that because of the botched ipo and stock direction, it is a different set of circumstances. if you are wondering about implied volatilities and how much to expect, we already know. there is a huge attracts. people are already trying to positi

it is important to room for ali baba actually started with an international focus. they were originally focused on trade and realized the big focus was china and pivoted inward. in some respects, when jack talks about going global, i think investors are speculating ali baba will test the waters globally but returned to her the big opportunity is, where the opportunities their best positions to seize is, which is in china. >> still a few more days until we start trading and i know we will be beating the drum until then. the new iphone doesn't come out until friday but they are already flying off the shelves will stop up next, we talk about on the strong demand or the latest phone compares to the previous version. ♪ >> welcome back. i'm emily chang. it's a record-breaking start to the new iphones which start shipping on friday. apple says pre-orders for the iphone 6 and 6 plus topped 4 million in the first money for -- 24 hours, double the previous record for the iphone 5. demand also exceeded the initial pre-order supply and some customers will have to wait until oct

so much as happened between oracle and apple and ali baba. cory, what have you got?mber is 32. 32 technology ipo's pending, twice as many than a year ago at this time. 157% more. they are looking to strike while the iron is shot. -- hot. naramore rpo's we have to cover? ipo's we havemore to cover? what? anything you have your eye on? >> there is so much in numbers terms. in terms of the underpricing and the issue. this tells you about what they wanted to do and why. >> alibaba definitely left money on the table. a lot left for yahoo! >> thanks for watching. have a wonderful weekend. ♪ >> we are finding it. we are testing it. we are on a quest to show you the most cutting-edge companies. >> tonight, i will step into eight tinkerers's paradise. techshop is democratizing innovation. >> i will get a taste of the miracle belly -- miracle dairy -- bery. taked i will

>> i think ali baba is going to be a great idea.f you can't get allocation on the ali baba deal, you can get yahoo today, own a piece of it and the company will still hold that. >> earnings are going to be down this quarter, earnings will be down next quarter -- >> average users of yahoo in the last ten years have gone from 250 million to 450 million. what valuation do you put on yahoo when you already admit the fact the al irki baba deal is - >> no, no, no. >> yeah, yeah, yeah. >> you're talking about overall growth, and i'm saying overall there is no growth in this business. maybe someday, but not yet. >> we'll leave it at that. the bull wins 52-48. now we'll talk about sectors of the year and that's health care. our next category king by the wall street journal, john shower is here with biotech investors. >> thanks for having me. >> it's great to have you here, and we're a little tight on time because of the president today. your top three picks. >> the first one would be biogen, leading company. they have 25% earnings growth ove

yahoo's still going to own 16.3% of ali baba. after tomorrow, yahoo's going to have no more exposure to ali baba. 2/3 of what remains is still going to be weighted on where it goes from here. and if there are tax efficiencies to be had, that's a big number. potentially, you're talking about $13 per share in yahoo. i think it's very likely they're going to be able to save a lot of taxes. that's why i'm in the stock. and that has more upside than even alibaba shares over the next year. >> is there a possibility that something else happens with yahoo? there's a reason to be in the stock beyond just the alibaba stake? it could actually be some sort of a target? there's value in yahoo? >> well, everybody, yeah, everyone knows that yahoo has the core business which is sort of the runt of all of the assets that it possesses. and i think marisa mayer has done a terrible job with it. but then they have the key asset in japan, and of course, alibaba, which soft bank has a still, 34% stake in. so i think, you know -- >> i'm sorry, i've got

ali baba stock is down 6%. amazon stock is down 6% since the ali baba idea was announced.ou think? >> it is interesting because there is amazon and ali baba that this initiative has nothing to do with amazon, it is on the outside like the washington post is so it doesn't have to wonder about stuff in the air to get attention. >> i think probably as the other guy said the two of them are not closely related. if you wanted graf for ali baba you are talking stuff you are doing with amazon, we seeing -- melissa: an effort to get attention for the company say we're going to space? >> except is not connected to amazon any more than the newspaper is. maybe attention for him that this is an unrelated effort. ali baba is not going into space. i don't think they are closely related. if you want to draw attention to your company talked-about of your company is doing, don't talk about stuff -- waterskiing in france. melissa: paypal is not spooked by apple pay taking a not so subtle shot in the new york times, the full-page ad never mentions apple by name, but says we the people want h

how ali baba closes. we will have it.uld two midtown traffic jams i had to get through. thank you so much. whether it is on wall street remains 3 years who is making and losing money today. anyone with a piece of sears, shares still tanking after a very negative analysts note. credit suisse came out saying the retailer is near the end and should start liquidating its assets. top of eddie lambert, watching his money, right down the drain. 25 million shares of the company meaning he has lost another $90 million today, that first. from riches to the pope, the popular pontiff was persuaded by and a italian tv host to auction off his cap. it has been put on the bay where the bidding has risen to a quarter of $1 billion, seriously? the pope says he wants all the money to go to kids in the condo. also making money chelsea clinton, a passion for elephants one step farther by incorporating them to her own gift line. that includes self elephants items for the nursery as well as elephants being christmas gifts, chelsea hosts her eff

hong kong lost ali baba's listing.ingapore trying to be a bit -- give a little, so to speak. >> give a little, get a little. thank you so much. news, a warning for the group of 20 finance chiefs and central bankers. low interest rates could lead to an increase in financial market risk. the message came in a communiqÉe delivered at the close of the gathering australia over the weekend. it outlined the potential risks for investors. indonesia's finance minister fears that stimulus could hurt asia's developing nations. some countries in the region may have to sacrifice growth to keep their economy stable when the fed raises rates. indonesian policy makers may have to tighten further to prevent funds from flowing of the country. chinese authorities are looking into galaxy securities. they save three staff are being investigated for personal reasons and they are cooperating. chinese brokerages have been under investigation for bribery, the galaxy securities with no link to those inquiries. new zealand's prime minister has o

china under ali baba's management. we chartered a transfer to bring yahoo! china to visit their new national headquarters. it didn't take long before we realize that the two teams have very different cultures. seemedina's team weary of management changes and seem to think that getting taken over by a local company was a step down. the two teams didn't mix well. and other important challenges getting government support. jack that with local government leaders to explain the benefits they would bring. have earned the support of local government over the years because, at an e-commerce company, alibaba was seen as a giant. >> [speaking mandarin] >> with the government embracing the partnership, we received an important green light. we learned that when we acquired yahoo! china we also acquired up local hot potato. severals broke that years earlier yahoo! handed e-mail information about a chinese political dissidents to the government, yahoo! was put on the defensive. ourreports coincided with annual summit where bill clinton was said to be the keynote speaker,

ali baba is going to be the flag-bearer. this is a piece of that, as is everything that will happen in each one of these roadshow stops. i was going to caution that this should not be considered for the chinese economy. we do not look at ebay and think prospect for the economy. it gives you a good glimpse on how china e-commerce is doing. we're talking about a rising middle class that by 2070 could be 20% of the entire population of china, which currently is at 1.3 4 billion people. the shows you how things evolve in china, but it is in no sense representative of all the companies in china. as an investor looking at this, you're betting on the chinese economy to grow, you are betting on the ali baba model. you are betting on one man approaching her, who is jack ma. >> when i was a professional investor, i attended many meetings. you have probably attended many more. i am wondering, all the chinese ipos, the reverse mortgages, the worst of businesses practices in china, does that not raise investor concern, g think they will

ali baba is in a lot of different areas of business. >> absolutely. it is almost like it has its hand in almost every pot when it comes to e-commerce. zeb eckert, keeping a close eye on it. some other stories making headlines, another acquisition may be in the works. in honor of japan's largest online mall is in talks to buy shopping.com. it is part of the plan to expand overseas. the pound is continuing its fall . it has weakened to a 10 month low on concerns that scotland may break away from the united kingdom. the drop comes after polls over the weekend showed a majority of people would vote for independence. the threat has been weighing on the pound. it fell the most in 14 months last week. governorentral bank says the aggressive stimulus by develod countries cod backfire and hurt global growth. he is concerned with what happens when the stimulus is unwound. rajan says emerging markets may cut spending and try to pile up foreign reserves. czaruropean union's banking is warning banks not to sidestep its rules on bonus caps. stern words, as banks tr

all these manufacturers now have direct access through the ali baba network. the biggest losers are the retailers, whether walmart or target or other stores that sell goods. many of these retailers sell chinese goods. they will be facing some margin issues because you can buy the same thing on ali baba much cheaper. the third piece is the vertical position of where they will go. you have seen them invest in media. they will do investments in search and mobile technology, and gaming companies. you will see more investments across the digital media landscape as they try to get more vertical. i also expect them to get bigger into advertising as well. says he is also open to a joint venture with amazon. thank you all. we will hear from alibaba chairman and founder jack ma coming up, and it is iphone day. i got my iphone 6. we will talk about apple as well. ♪ >> welcome back. floor ofve from the the new york stock exchange where alibaba has made its public a view. i spoke with chairman and founder jack ma. a big day for him. his closestome of friends, alibaba custo

put baba in here and we've got plus 38%.kes it a real -- in line, in line, well, not as good as twitter, but the principle is fairly normal. >> it's interesting to see what happens over a year, despite the ipo pop, whether that has anything to do with it. >> that's right. actually, these are particularly good results. on a three year basis, ipos underperform the market on a relative basis. i've picked out big, prominent names. but in aggregate, because of the first-day move, going forward stocks underperform. >> interesting, carter. dan, what are your thoughts? on buying ipos in general? >> talk about baba here, that's all anyone cares about here. to me, listen. there's a scarcity value to the name, no doubt about it, just as henry blodgett famously said before the facebook ipo, calling it muppet bait. i think buying this near $100 is muppet bait. i think it's a very, very risk asset to get involved with right now at this stage of the game. i wouldn't be doing it. so i know there's a lot of really smart hedge funds and mutua

>> let's talk about baba. there's a certain scarcity value and a lot of hype.blodget said before the famous facebook ipo, he said buying this stock near $100 is muppet. it's a dangerous risk asset to get involved with right now at this stage of the game. i wouldn't be doing it. you know, i know there's a lot of really smart hedge funds and mutual funds out there that bought on the deal at $68 and keep buying. they have to. they have a much longer time horizon. i think the margin for error is dangerous. >> i'm often a skeptic on these type of things but i think in some fairness to baba here, it's interesting what jack ma was talking about, 15-year horizon. the guy is on third base already. he's 75% the size of the market capitalization of walmart where he stands right now and a company trading at a multiple that's significantly cheaper than facebook. do i think they're going to get say chance to buy the stock at a better price? i do. interestingly, compared to names you just talked about, twitter, for example, facebook, for example, i actually think this is a be

investors appear to be buying into ali baba's ipo. the company has enough demand to sell its stock at the high end its $66 range according to people with knowledge of the matter. is in san francisco. we are learning more about the tense relationship between tech companies and the nsa. the government threatens to find yahoo $250,000 today if it did not turn over user data. this happened in 2008. we will look at what changed since then. to the lead story. the biggest iphone appears to be off to a heart -- a hot start. backorder andon is not expected to ship for three or four weeks. phone is scheduled to hit stores. twitter.nted on tweeted -- everyone having problems but supplye issues, is it a couple more are they trying to drum up demand? do you think, is this marketing or do they have supply issues western mark rex every single time they come out with a phone this happens. i will go with this is probably the way they want it to play out. it is great to have two or three week backlogs. it would be a disaster if it were two or three mon

ali baba has managed to become the king of online retail in china.nstead this company build a platform to and whenever anyone using that platform, it's a brilliant model. it requires no real inventory, no real financing, very low overhead. meanwhile, the company has embraced possible transactions use ali baba's platform. alibaba is still relatively chief. i liked it in today's weakness, and why buy more into a deeper pullback. i totally get the endless stoirz about it must show half the china is on the internecessary given the lack of stores in china and the rapid rise of the web, why couldn't we think it's only a quarter built out. ma told me his ambitions for the red of the world, too. why stop dreaming many china. to quote jimmy cagney in "white heat" -- made it, ma. top of the world. let the profit takers ring the registers. as we get closer, to the price target, you've got to be buying, not selling. next up, my second-favorite company to become public this use -- go pro. another red-hot shock up 117% of course i wish the stock were cheaper, but

ali baba, that is china's amazon. $160 billion.he picture. >> certainly one type of strategy. we are not direct competitors. it is the operative word. we are not competing with amazon. they do not want to say that they are. they do not actually do the volume. they do not have the inventory. this means unofficially we could be looking at the biggest ipo ever in history. this is just a massive. they will be out another chinese record. we are waiting until the final pricing on thursday. >> this is so big. they are selling other technology stocks now. >> that is a fair assessment. we saw the biggest drop in two months. they solve the biggest drop in about two months. we are holding off. we are waiting. we will wait and see. we will be covering it live at the new york stock exchange. stuart: check the big board. about 25, 28 points away from the all-time high. gradually gaining ground. what about the s&p 500? same story. up about half a percent. the 10 year treasury. a delay on the iphone six launch in china. that is big news. look at a

yahoo can take the money from the ail i baba -- it's still shares on the deal and there's plenty more behind it, and reinvent itself or buy back a gigantic amount of stock. something it's been doing very consistently all along the way. and it's working. either way, if you stay tuned, i'll tell you what worries me about the ali baba, and it's not a typical concern that you'll hear voiced next week. how about tuesday? talk about tell i graphed. right on tuesday we get the launch of what could be a breakthrough devices for apple. it's always been the holy grail of retail, and a wider screen variant, part of the market that samsung has been dominant. let me be clear about this. okay? i'm real el really urging you, i like apple, i've liked it forever. this is, however, an event that may have lost a lot of its surprise factor, and even if its wow factor because of news flow ahead of the media has been president clintone ee eclintone. after the close of tuesday, we get a key report, talk about a hot area, palo alto networks. i believe they have the most sophisticated software out there to st

twitter question for the day, why is ali baba going public?estion for today. >> the roadshow begins today. we have some divergences of opinion on this transaction. alibaba has a gigantic transaction. why is it going public? >> i was suspicious. cashing outust question mark looked at the chop just -- top headlines. >> a majority of scottish voters want to break away from the u.k.. 51 to 49% edge. the pound tumbled on the news. the u.s. expands its air offensive in iraq. thekes were conducted for first time in the western part of the country. follow weeks of strikes on the other side of the country. militants have seized control of another dam. for you.e the duchess of cambridge is expecting once again. yes. breathlessly exciting. tom keene is shedding a tear. they are having their second child. prince george was born in july of last year. now he has competition. kensington palace says she is suffering acute morning sickness. we wish her well in all seriousness. these are the top headlines. >> very good. >> i don't even know where to begin with

. >>> chinese ecommerce powerhouse ali baba -- ali baba was estimated at $250 billion.y own many companies. the ceo hopes ali baba will be >>gger thanwal-mart. > the mays runner dominated the box office this weekend. this is amazing. the young adult adaptation opened with $32.5 million. >>> look we have all seen sports arena proposals and we all know they can go south very fast. yesterday seahawks overtime win against sean showed proposed to his girlfriend on the field with the use of the stadium replay monitors. thankfully, she said yes. >>> here's a look at your first alert 7-day photograph. we are going to keep it dry until at least wednesday night. today beautiful sunshine, low humidity. going to make the high of 74 feel a little bit cooler. >>> checking out the ride for you, outer loop of the beltway was you head west past new hampshire avenue, volume only. those delays take you southbound i-95 northbound delays into laurel. southbound getting into greenbelt, delays on 50 and the parkway. these delays continue past eastern avenue. on you 295 heading in is heavy too

on friday, ali baba jumped 38%.he offer price was $68. >> you wonder why they priced the thing a 29 times earnings when there are so many other companies trading a lot higher than that. >> now it is at 40 times earnings. this jump of 38% is the biggest one-day jump for an ipo of $10 billion. it took a while for the trading to begin. a time lag. perkins is the most successful venture capital firm in the world. why were the pricing at a 29 times earnings and then get such a pop? >> a more interesting angle that we are excited about is the importance of tech companies in china. for us in silicon valley, what it signifies is the power shift. have 80% of all commerce in china that is flowing through ali baba. you have a company with a hugely strong cultural underpinning. you have the yahoo! investment. the dynamics here are really important and it will be interesting to see how the company matures from here. >> there is a case where investors are using ali baba as proxy. the partnership structure has a lot of people torn

aly baba is on wall street. what next for the e-commerce giant? smithkline was fined a record 400 $19 million by a court in china today. it's the largest penalty of its kind ever imposed on the company. bribing found guilty of doctors and hospitals to use their products. they formally apologized for the actions, saying they will change business practices to eliminate misconduct in the future. we have the latest on the ruling and its wider applications. >> this is the largest fine in chinese corporate history and a serious embarrassment for glaxosmithkline. claim they have been operating a major bribery andork, getting doctors hospitals to use their product in order to boost sales and push up prices. the company has now been fined almost half $1 billion. the head of chinese operations has been given a suspended jail sentence. for more than a year, gs k has been cooperating with chinese authorities. it now says it fully accept the facts of the investigation. in a statement, it said the illegal activities of its chinese units were wholly contrary to

coming up on bloomberg west, they will have the very latest on the ali baba ipo.to raise more than $21 million which is -- $21 billion which is the largest public offering in u.s. history . that is coming up on bloomberg west. ♪ >> this is taking stock on bloomberg. 1900s, part of the bronx was a beer lovers paradise. that had seven breweries and a 20 block radius. by the 1960's, that all disappeared but now beer is making a comeback in the bronx and joining me is the cofounder of the bronx brewery, chris gallant. thank you for being here. before we go to the bronx, we have to delve into a little background of chris gallant. tell me about your experience. you were doing work for heineken international, right? >> i was. i work in south america, mostly brazil. i could not ask for a better job. >> was that how you learned about the beer industry? >> it was my first job in the beer industry so i learned a lot of different things from sales to marketing while working down there. >> was this after you are at bain? >> during and after. >> then you go down into the whole

you can expect to make a lot of money with aly baba. company that is doing just that. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. a research tool on thinkorswim. "hello. you can go ahead and "have a nice flight."re." ♪ music plays ♪ music plays traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the fewest cancellations and the most on-time flights are nothing if we can't get your things there, too. it's no wonder more people choose delta than any other airline. no. not exactly. to attain success, one must project success. that's why we use fedex one rate. their flat rate shipping. exactly. it makes us look top-notch but we know it's affordable. [ garage door opening ] [

. >> reporter: ali-baba has come a long way quickly, this neck tie manufacturer is one of 10 millionts using the on line listing service and connects small and medium size businesses to domestic and global buyers. >> customers can buy our product in like five minutes and everywhere in the world and they can check our products in one web page. >> funder and channel of the ali-baba group. >> reporter: barely known outside of china but in the country he has attained almost cult-like status, a billionaire with close links to the communist party. analyst say the country strictly controlled internet means he has to tread carefully. >> jack understands very well his position depends on maintaining strong government relations and if he moves off in a direction that is too far away from what the government wants he could see things change very quickly. >> reporter: another challenge for ali-baba, counterfeiting and fakes have appeared on his shopping website and recently removed from the u.s. government's list of natorous markets and they call him a visionary. >> it's like a typical chinese c

nadin baba, al jazeera, paris. >> and more from baghdad. >> this has been welcomed by the iraqis. they are having a huge impact ton country. now the iraqis will be looking for three key things from this conference. they will be looking to update the iraqi army, help in intelligence gathering and also humanitarian assistance. now this conference didn't nows anannounce any concrete measure. that will be disappointing. that hasn't happened, indeed the french foreign minister says there are gaps, but the broad overarching concept, the i.s.i.l. needs to be defeated. there are concerns here from many different groups particularly the sunnis that by internationalizing the fight against the islamic state group what you're doing is not reaching out to the people that can help you, people like the sunni rebels who are currently involved in fighting with i.s. against iraqi army forces, about bringing those people back into the fold. also by reaching out to community leaders who so far have felt marginalized by this shia-led government here. also there is another issue here. one of the countr

we know that ali baba try to restrict those as well al. what does that tell you? is very interesting. it is unusual to have a lockup in a large chunk of shares being held. we don't know how many are selling. that tells you the strength of the demand for the shares of this stock. it can absorb this kind of selling and still go up 38% on the open. >> i look at stock sells. there are lots of reasons that people sell stock. there's only one reason people buy stock. i don't know what that means for a chinese ipo. how different is it and what might it mean given where these people come from and what their relative family wealth is and the kind of bump this might mean for their actual personal wealth or standard of living? >> this is unprecedented. this is remarkable. this is like a mini stimulus package. $8 billion goes a long way, even in my neighborhood. >> even in mind neighborhood. [laughter] >> we are talking about a widely held amount of money. it will be very interesting. i think it has never been seen before in china. >> i know you are familiar with the area, wh

ticker symbol baba. closing bell 315 minutes -- 15 minutes away. glamorous and classy as kerry washington's scandal character? we will show you soon, in just a few minutes, tell you which retailer will help you get that washington glam look. professional yet stylish. ♪ ♪ new york state is jump-starting business with startup-ny. an unprecedented program that partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. t

>> talk about baba here, that's all anyone cares about here.'s a scarcity value to the name, no doubt about it, just as was famously said before the facebook ipo, i think buying near a hundred dollars a muppet bait. it's a risky asset to get involved with right now at this stage of the game. i wouldn't be doing it. there's a lot of smart hedge and mutual funds, bought on 68, bought, they have to. a longer time horizon. i think the margin for error with a $225 billion market cap is dangerous. >> i'm a skeptic, but i think in fairness here, it's interesting what jack was talking about, 1 15-year horizon. he's on third base already. 75% the size of walmart, trading at a multiple that's cheaper than facebook. do you get a chance to buy the stock at a better price? i do. interestingly, compared to the other names you talked about, twitter, for example, facebook, for example, i think this is a better value. >> yeah, and a lot of the guys on the floor talked about how it looked like the 1990s down there. interesting discussion. up next, tough week for

plus, gaga for baba. plus, gaga for baba. can whenwork with equity experts who work with regional experts that's when expertise happens. mfs. because there is no expertise without collaboration. suddenly you're a mouthbreather. well, put on a breathe right strip and instantly open your nose up to 38% more than cold medicines alone. so you can breathe and sleep. shut your mouth and sleep right. breathe right >>> predictions. gary, you are up. >> brenda, here is my stock advice. when a company has a data breach, buy. first it was target, now home depot. >> bear. >> your prediction. >> allibaba is worth more. you get the yahoo! business. i own it. >> bear. not a fan of the yahoo! hedge fund. >> no thanks vote shows the uk may stay together. the u.s. dollar is better than the pound or euro. bonds up 5% in the year. >> john, what do you think? >> william wallace is rolling over in hisgrave. i like equity. >> neil is next. take it away. >>> is isis a crisis because we are godless? welcome everybody. i'm neil cavuto. look at the upr

analysts talk about baidu, ali baba.more of a b to marketplace then business to consumer. >> it is all of those. you can think of it as beta beat, beat to be -- b to b, b to c, and c to c. ncent is sprawling. that -- this is the war that is being fought. there are five different battles. --ile, e-commerce, financing payment essentially, the online and off-line world, and gaming. all of those battles are being fought right now. >> thank you very much. great to have your insights on "market makers." investing in a lender that charges 600% interest on loans. we will tell you how harvard got mixed up in all of it. one of the most storied franchises in major league sports and plays in one of the smaller stadiums. ♪ >> live from bloomberg headquarters in new york, this is "market makers. i am erik schatzker, flying semi-solo today. stephanie is down at the bloomberg sports is nice summit. back there in a few minutes. i want to talk you about payday loans, the small and unsecured credits. they have been around in america since

so those who run ali baba will be in new york today and other cities across the united states looking for backers. alibaba does have san francisco roots. he asked a coffee server as a san francisco coffee shop and she did so there you go. yahoo! was smart enough to invest in ali baba very early and will make tens of millions of dollars off the ipo. even the structure of the condition a company and how it works should be run squarely by yahoo! but it's not. alibaba wasn't going to invest or list on the american stock markets, it's wanted to do it on the hong kong markets but hong kong's rules protecting investors were too strict. noodle on that for a moment. so they are listing on the exchange were rules are looser. we'll be talking a lot more about ali baba over the next couple of weeks, sam and laura, but it's going to make history. >> i wonder what it will be priced at. >> that's the biggest question, that's why we have fuzzy numbers. >> i'm busy noodling. >> despite the drought, some people are seeing water where they haven't for years. experts say you can thank the earthquake. las

just like they have been selling ali baba shares. panicking but they because many fear the true colors of china are showing and they don't like what they're seeing. china not so much clashing with aga demonstrators as china's past clashing with itself. be rich or die trying, because the freedom to make money means the freedom of a government to comfortably embrace its citizens having money and making more money and wanting and doing the things that invariably come with money and having more money. ali baba proved that investors want to investigative in new china. >>> all right, we're learning, member the fence justify jumper at the white house and they claim he got as far as the north puerto entrance. it turns out that goepz slipped through the north polfico, got -- the obama family was not there at the time, they had just left. and then into the east room, that's the ornate room where the president conducts a lot of press conferences. so he had gotten into there, almost into the green room that faces the south lawn. so essentially k

there's also a big focus on yahoo which owns about 22% of ali baba. yahoo made about $8 billion when the company went public. so what will yahoo do with money? the money? some analysts think it could buy aol. and in the smartphone war between apple and samsung, score one for apple. a new study finds apple's new iphone six and iphone six plus are stronger and less likely to break them the samsung galaxy s5. overall the study found the manufacturers are just making stronger phones, and all the ones tested scored better for water resistance. we should know samsung's new smart phone, the galaxy know was not part of those tests. if you're anything like me you will want to put a nice thick case on your phone. >> mine is pretty beat up that's for sure. ok joe i guess people who cannot afford a vacation or don't have the time we have a little something for them, what's that all about? >> marriott is giving people the chance to teleport themselves somewhere else, like the beaches of hawaii or downtown london. you step into the teleport machine and virtual real