Alibaba challenges Silicon Valley

Alibaba challenges Silicon Valley

Alibaba logoUntil now, Silicon Valley’s high-tech companies ruled the roost, leaving IBM behind years ago, with only Washington-based Microsoft among the top firms outside the Valley. Now they’re being challenged by Chinese-based Alibaba, which just issued a record IPO.

Although values have fluctuated, on its first day on the market Alibaba’s market capitalization was $225 billion, more than Facebook, and lower only than Apple, Google and Microsoft.

I’ve read several biographies of Silicon Valley bigshots. There really is a vibe there. The late Steve Jobs often got together with Larry Ellison of Oracle, Mark Zuckerberg of Facebook and other tech titans. They all lived near one another and attend family events, shop talk included.

Alibaba is based in Hangzhou, the People’s Republic of China. So it’s showing how success outside the Valley can be achieved.

This is a challenge to California’s belief that its tech firms always will be No. 1, no matter how high the taxes or onerous the regulations. That may not be the case any longer.

Of course, nowhere matches Califorinia’s incomparable weather. But Hangzhou doesn’t sound bad, according to Travel China Guide:

Hangzhou weather is generally warm and mild year round, with abundant sunshine and rainfall. There are four clear-cut seasons – a short and rainy spring, a hot and humid summer, a cool and clear autumn, and a dry and cold winter.

There are two rainy seasons in the region – one is the Plum Rain Season beginning in late June through early July; the other comes with heavy rains and potential typhoons in August and September.

Typhoons aren’t great. Then again, they might be better than record drought.

Overall, Alibaba’s rise is a warning to California to get its act together. Or make all California schoolchildren learn Mandarin.

5 comments

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  1. LetitCollapse
    LetitCollapse 22 September, 2014, 15:44

    I see today’s Aliababa price is about $89/share, down $4. And it’s down about $10 from a few days ago. Another flash in the pan. It’s not a question of whether to short it….it’s a matter of when. The fact that it has about the same market valuation as WalMart is laughable. Jack Ma better enjoy his celebrity status while he’s got it. 🙂

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  2. Ulysses Uhaul
    Ulysses Uhaul 22 September, 2014, 19:35

    Bubble time like around 2000.

    These internet sites are swill in a garbage dump found bottle extolled by the no asset, young and dumb momma boys living in basement apartments.

    Be very very careful. A good truck last for twelve years. A good tech gadget is junk in two years!

    Reply this comment
    • LetitCollapse
      LetitCollapse 23 September, 2014, 09:34

      The kids these days couldn’t care less that we’re bombing other sovereign nations without any legal international authority or that we’re in the process of arming terrorists in foreign lands with guns that will eventually be used against us and our own allies. All their attention is focused on the whether the new features of the latest iPod or iPhone will allow them to tweet faster, or whether their applications for more student loan money got approved by Uncle Sugar.

      I’ve seen the United States of America at it’s very best. Today I see it at it’s very worst.

      Hey, if the kids don’t care what my generation is doing to theirs – why should I? One can only blame ignorance up to a certain point.

      Reply this comment
  3. Ulysess Uhaul
    Ulysess Uhaul 23 September, 2014, 10:24

    Momma boys in Pluto jammies influence our culture……..imagine……total losers shaping our future!

    Reply this comment
  4. LetitCollapse
    LetitCollapse 23 September, 2014, 13:03

    Jack Ma says that if you are poor at age 35 that you have no ambition or desire to be successful – and you deserve to be poor.

    Jack fails to mention that a considerable amount of wealth in the world is inherited wealth. How much ambition does it take to be propogated from a rich seed? Look at your rich friends. How many inherited large sums of money from family? (At least those who will admit to it). How many started with nothing? How many would have made it in their line of work without family connections?

    I get the impression that Jack is a state-sanctioned CEO puppet. The ruling class decides who becomes a billionaire and who doesn’t today. Look at all the uber-rich telecommunication companies that willfully handed over their confidential customer account data to the NSA with a wink and a nod. Did you notice any resistance? I didn’t. And had Snowden not popped up none of us would know the better. 😉

    Had Jack gone into politics as opposed to IT I bet he would have made a wonderful ‘community organizer’.

    And China likes to use Jack as window dressing for billions of their restless peasants as a model that says “if he can do it so can you”. False hope and social order are 2 branches that grow from the same tree.

    An informed 5th grader knows that in China one don’t make it unless he pays huge bribes, courts feckless government leaders and jumps through buring hoops of fire for corrupted political cronies.

    As long as Jack can feed the peasants with illusions of ‘hope’ he’ll remain a superstar.

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