Carson Block Cautions Investors About China-Based Alibaba (BABA) - DealBook

Short seller Carson Block of Muddy Waters said he is wary of upcoming IPO Alibaba (NYSE: BABA) and investors should be too, according to reports in the New York Times' Deal Book.

“If Alibaba wanted to defraud investors, it absolutely could,” Mr. Block told an audience of accounting students and aspiring investors at Baruch College.

"China is to stock fraud as Silicon Valley is to technology," he added. While Block said this fact should weigh on Alibaba's valuation, he admits in this market it probably won't matter.

Alibaba is expected to debut on the NYSE on Friday, September 19th and is expected to be one of the biggest IPOs ever.

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