B4IN Test: Should I Buy Alibaba Stock? (NYSE: BABA) By Money Morning Staff Reports

Friday, September 19, 2014

Should I Buy Alibaba Stock? (NYSE: BABA) By Money Morning Staff Reports

As we countdown to what could be the biggest initial public offering (IPO) in history, we're seeing a theme in our reader questions:

Should I buy Alibaba stock ?

How can I buy Alibaba stock ?

Is it too late to get in on the Alibaba IPO ?

Here are your answers...

Should I Buy Alibaba Stock (NYSE: BABA)?

Yes - this is a historic stock deal. Profit opportunities like these come along once in an investor's lifetime.

Alibaba is going to set records for growth and for profits; it's the kind of company you want to own.

"According to the research I've seen, e-commerce in China is projected to hit $540 billion by 2015, and that's just for starters," said Money Morning Executive Editor Bill Patalon. "By 2020, China's e-commerce market will be worth more than the United States, the United Kingdom, Japan, Germany, and France combined. So we know that growth is coming... and we know that Alibaba is the No. 1 gun."

How Can I Buy Alibaba Stock?

should i buy alibaba ipo stock You can place your order tomorrow morning when BABA stock opens and hop in "at Market," meaning you'll pay whatever price is then available. Limit orders probably won't do you a whole lot of good given how volatile we expect Alibaba to be when it starts trading.

One way to go is to buy half of your ideal position in BABA when the market opens on Friday then look for another opportunity to pick up the rest.

Is it Too Late to Get in on the Alibaba IPO?

For U.S. investors hoping to get in on the action and profit directly from the IPO, all orders for allotted shares had to be placed by 4 p.m. EST on Wednesday Sept. 16.

But there are several exciting "backdoor" ways to play this historic offering, too. We recommended one such stock to members of our premium service months ago. Investors who followed along have enjoyed total returns of more than 30% - with more ahead. Of course, it wouldn't be fair to paying members to share those plays here. But if you're interested in joining them, click here .