Seeking Alpha

Yahoo outperforms following BofA/Merrill note, CFO talk

  • BofA/Merrill thinks an Alibaba (ABABA) IPO filing could happen within 1-2 months, and that Yahoo (YHOO +3.4%) shares could reach $45 in response.
  • Alibaba hasn't yet provided a clear IPO timetable, or announced whether it will go public in New York or Hong Kong. A spokesman recently said Alibaba would renegotiate its deal with Yahoo if an IPO is pushed out to 2015.
  • CFO Ken Goldman provided an upbeat and mostly Alibaba-free talk yesterday evening at a JMP conference (transcript). He stated Yahoo, whose display ad sales have been slumping, is "seeing some stability" in its top-line.
  • Goldman also stated Yahoo's spending growth (responsible for a soft Q1 op. income/EBITDA forecast) will slow in 2014, and that it will "continue to look for efficiencies" to offset new investments.
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Comments (5)
  • dennynightingale
    , contributor
    Comments (3) | Send Message
     
    With the Big 4 audit firms China offices suspended by SEC judge how can anyone know for sure that Alibaba financials are not manipulsted, are close to being accurate?
    4 Mar 2014, 01:03 PM Reply Like
  • Pamela Peerce-Landers
    , contributor
    Comments (203) | Send Message
     
    Interesting that Merrill's price of $45 for Yahoo after the Alibaba matches the high end of my range which I published on February 23, 2014:

     

    http://seekingalpha.co...

     

    except this analyst is 9 days late.
    4 Mar 2014, 08:31 PM Reply Like
  • coffeexxx
    , contributor
    Comments (25) | Send Message
     
    $45 yahoo, where would that put the Softbank shareprice? 11000 yen?
    5 Mar 2014, 12:04 AM Reply Like
  • 385082
    , contributor
    Comments (9) | Send Message
     
    has anyone at yahoo ever discussed a shareholder distribution of the Alibaba shares?

     

    I would think it would be more tax efficient especially for shareholders who are either not taxable or are holding yahoo shares in a tax free account.
    9 Mar 2014, 10:08 AM Reply Like
  • Pamela Peerce-Landers
    , contributor
    Comments (203) | Send Message
     
    385082,

     

    No, I have not heard that option, though I would love it if they did it.

     

    Pam
    13 Mar 2014, 03:52 PM Reply Like
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