CNBC star Jim Cramer weighed in on what the Alibaba IPO means for other stocks:
Let me be very clear: there is not enough money to handle the Alibaba deal right now. It will cause selling in most high growth stocks
— Jim Cramer (@jimcramer) May 7, 2014
The Alibaba IPO is expected to be massive. There is talk that it will raise $US15-$20 billion. Cramer thinks that money rotates out of certain high-growth tech stocks and into Alibaba.
Cramer has been talking about this a lot lately. Last month he said, “A stock market is like any other market. It’s all about supply and demand. That’s basic economics 101. So when you flood the stock market with too much new supply, say via endless torrent of IPOs, that puts real downward pressure not just on those stocks but on the entire averages.”
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