Yahoo +3.9% premarket on Alibaba IPO news

Yahoo's (YHOO) gains are in response to Alibaba's (ABABA) confirmation it plans to do a U.S. IPO.

At a $140B valuation, Yahoo's 24% stake would have a pre-tax value of $33.6B.

Over in Tokyo, SoftBank (SFTBF) rose 4.9% overnight. At a $140B valuation, its 36.7% stake in Alibaba would have a pre-tax value of $51.4B.

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Comments (6)
  • alkmaar
    , contributor
    Comments (30) | Send Message
    what the hell. so the rest of yahoo is worth just a meager $6B?
    17 Mar 2014, 05:15 PM Reply Like
  • Slomoose
    , contributor
    Comments (13) | Send Message
    The talking heads common threads are: Their is money to be made on the Alibaba IPO, 1. it is going to be Big. 2. A play on SFTBY & YHOO could reap some nice profits. 3. No one knows when, but sooner rather than later. 4. 4 to 5 Banks will be involved. 5. The retail investor will have to wait his/her turn to buy ABABA shares.
    Any more facts out there to share??
    17 Mar 2014, 08:51 PM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (428) | Send Message
    Sure, those are good facts but here's a different angle:


    People who think they are on the cutting edge of 2014 actually have their heads stuck in the past which is why they can't see a transforming Yahoo!. That's why they give little or no value to Yahoo's core business. Meanwhile Yahoo! has a solid plan to bring mobile and Information technology to the masses of ( non-techie) people who aren't all clustered on the coasts and in the biggest cities and they just don't see it even though it's unfolding in front of their eyes. You can lead an investor to water but...


    Let's see, Tumblr, Yahoo Weather, Yahoo Finance, Yahoo News Digest (brilliant), Yahoo Mail, search (that one needs work), Facefeed and more to come. And worth what? About nothing if you listen to some people. The silver lining is the investment potential. If people weren't determined to believe Yahoo! will always be "old school" YHOO would be much more expensive than it is right now. I keep hearing how Yahoo's revenue is falling or they don't have enough advertising but with FB I hear the opposite- if they have the people the money will follow, blah blah blah. It's all sort of illogical and silly. Whatever.


    I do believe that the Alibaba IPO has a tremendous upside and only moderate risk and that YHOO and SFTBY are good plays leading up to it. But that's pretty much common knowledge at this point. But my hunch is to go long YHOO- that's different. I have lots of other facts but they aren't related to this thread.
    17 Mar 2014, 09:22 PM Reply Like
  • Slomoose
    , contributor
    Comments (13) | Send Message
    Being long on a stock doesn't necessarily mean we are in love with it, as with Yahoo or most anything else in my portfolio. It just means it gets some extra consideration on the buy and sell side... IMHO


    I'm long on YHOO and a few other tech stocks, but mostly focused on all the ramifications of the ABABA intro. And Yahoo will definitely be a part of that. As I understand it, they are bound by contract to divest themselves of shares of Alibaba in a specified time after the IPO.


    The two other IPO's, and SINA's Weipo although smaller may suck some air out of the room if they go first? Will BIDU and TCEHY get caught up in the rush and make some nice gains to?
    Lots to think about. It's not quite like going to Vegas but close.
    18 Mar 2014, 02:29 AM Reply Like
  • Silver.Doc
    , contributor
    Comments (4) | Send Message
    Does FXI plan to make room for ABABA, bc if it does, then FXI, the ETF that covers China's 25 largest companies would stand to benefit nicely?
    19 Mar 2014, 02:45 AM Reply Like
  • Slomoose
    , contributor
    Comments (13) | Send Message
    Also wondering about CQQQ if ABABA fits the index requirement ? it will be in their holdings for sure.
    19 Mar 2014, 02:42 PM Reply Like
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