Investors should steer clear of Alibaba, valuation expert Aswath Damodaran said Wednesday.
The Chinese e-commerce giant is expected to go public Friday, selling 123 million of the 320 million American Depositary Shares at an expected price range of $66 to $68.
On CNBC's "Fast Money," Damodaran, a professor of finance at New York University's Stern School of Business, noted that he was looking at Alibaba stock from the perspective of a long-term investor, not a trader, adding, "I wouldn't have bought Twitter at any of the prices it's been offered at."
Damodaran, known as the "Dean of Valuation" for his expertise, said that it was the first initial public offering where the pricing range was close to his own estimate of a company's worth. "And the first reaction that I had was, 'What did I do wrong?'"