Tomahawk, WI 09/10/2014 (Basicsmedia) – The rush for Alibaba stakes according to CNBC‘s Jim Cramer is going to force many investors especially in the internet sector to sell some stocks in other tech companies in a bid of getting the much-needed capital for the upcoming Alibaba IPO. Some of the stocks according to Cramer that may be up for sale heading into Alibaba IPO include Apple Inc. (NASDAQ:AAPL), Facebook Inc. (NASDAQ:FB) and Google Inc. (NASDAQ:GOOG).
“Because anyone running a hedge fund or a mutual fund knows to stay diversified I see them selling profitable internet oriented stock and then swapping into cash into Alibaba. Which is China version of eBay Inc.(NASDAQ:EBAY) and Amazon.com, Inc. (NASDAQ:AMZN) although it is actually bigger than both of them combined in terms of the number of transactions and processes, and it is a heck a lot profitable,” said Mr. Cramer.
Facebook Inc. (NASDAQ:FB) remains attractive in the market in terms of its upside potential of which a number of investors according to Cramer may look to tap into, should Alibaba flop at the IPO. Facebook is already 40.3% up for the year. Cramer believes that should Facebook selloff below the $72 mark in the coming days, which is its 50 day moving average then it would be appropriate to snap it up.
Google Inc. (NASDAQ:GOOG) is another high-flying internet stock that Cramer believes hedge fund managers may be forced to sell some stakes to get a much-needed capital to invest in Alibaba. Google has for some time maintained a steep uptrend line that matches its 200 day moving average.
“The portfolio managers are logically going to sell in order to raise cash for Alibaba and remember they probably have to sell something to participate in the Alibaba deal because there isn’t much money flowing,” said Mr. Cramer.
Should managers actions of selling stakes in Google Inc. (NASDAQ:GOOG) causes the stock to plummet to the $570 mark, Cramer believes it would be appropriate to buy the stock aggressively as it will be cheaper with the potential of growing afterwards.
Apple Inc. (NASDAQ:AAPL) has a reputation of always pulling down before moving up again on the release of new products according to Cramer. Investors according to Cramer may be forced to sell the stock as it is currently trading at the $97 making it a possible sale based on valuation metrics
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