Alibaba is too risky for most people to invest in. This is because people don't really know the ins and outs of this site. At least with a site like Amazon, it was a tool that was geared towards all shoppers. Alibaba is only geared towards wholesale buyers. The name now has so much hype, that Alibaba just also seems to risky because of that.
When foreign investors buy shares of Weibo, they are buying into Weibo Corporation in the Cayman Islands. That company is then linked to a string of other companies through a byzantine series of contracts that attempt to mimic the conventional control normally obtained through ownership. The result is an extremely precarious situation in which Chinese regulators are told the business is Chinese-owned and foreign investors are told they own it. As the US-China Economic and Security Review Commission report states: “Neither claim is technically true, and the arrangement is highly risky and potentially illegal in China.”
Because of the shaky ground the structure is built upon, "the contracts are only binding and enforceable if Chinese courts are willing to uphold them", the report says. The major risk for US investors is “that the Chinese shareholder... will steal the entity, ignoring the legal arrangements on which the system is based"
Yes, investing in Alibaba is too risky, because it is uncertain where they will fall in the market. They might do really great, but since they have a lot of copyright and counterfeit issues, it might be the kind of thing where they are suddenly out of business the next day. I will find other investments.
Investing in Alibaba is too risky because they are just coming out to be publicly traded. They also have been proven to sell counterfeit goods on their website. If they end this completely, this may make their revenue fall and making them look not as profitable as they were in the past.