Fri, Nov. 6, 1:38 PM
- Alibaba is down 3.9% after fund manager Jim Chanos recommended shorting the stock (perceived accounting issues were brought up), and going long JD.com as a hedge.
- Yahoo (NASDAQ:YHOO), which has followed Alibaba higher in recent weeks (aided by Alibaba's FQ2 beat), is naturally lower in response. The company's 384M-share Alibaba stake has a pre-tax value of $31.5B.
Tue, Oct. 27, 9:22 AM
- Yahoo (NASDAQ:YHOO) has risen to $35.20 premarket after Alibaba (BABA - up 8%) beat FQ2 estimates with the help of a 12 bps Y/Y increase in Chinese marketplace monetization/take rate (contrasts with FQ1's 19 bps decline) to 2.42%.
- The trigger: Mobile monetization rate (up 52 bps Y/Y to 2.39%) is now nearly even with Alibaba's total monetziation rate, helping mobile grow to 61% of marketplace revenue from 51% in FQ1 and just 29% a year ago. Mobile monthly active users rose 13% Q/Q and 59% Y/Y to 346M, and total annual active buyers 5% Q/Q and 26% Y/Y to 386M.
- Alibaba's China marketplace GMV growth slowed to 28% Y/Y from FQ1's 34% and FQ4's 40%. Total China commerce revenue rose 35% to $2.88B, international commerce rose 14% to $289M, and cloud computing/Internet infrastructure rose 128% to $102M. EBITDA margin was flat at 50%, and free cash flow rose 52% to $2.14B (above net income of $1.46B).
- Not counting any potential tax payments, Yahoo's 384M-share Alibaba stake is now worth $31.6B.
Tue, Oct. 27, 9:17 AM
Thu, Oct. 15, 12:26 PM
- Looking to halt ongoing share losses to Gmail (or at least slow them), Yahoo (NASDAQ:YHOO) has overhauled its iOS/Android Mail apps. New features include a smarter search engine that makes suggestions based on queries and message content, the ability to fully manage Hotmail, Outlook.com, and AOL.com e-mail accounts, and social media content integration for contact profiles.
- Getting the most attention is Yahoo Account Key, a feature that lets users login without a password by linking their Yahoo account to a mobile device, and approving/denying logins via push notifications sent to the device. Yahoo argues Account Key is more secure than passwords, and eliminates the possibility of a user being unable to logic due to forgetting his/her password.
- comScore estimates Yahoo Mail had 71M U.S. users as of August, down from 96M two years earlier. Over the same time, Gmail's (GOOG, GOOGL) U.S. base, strengthened by the pre-installing of a Gmail app on devices using Google's version of Android, is believed to have grown to 135M from 96M.
- Yahoo is up strongly thanks to Alibaba, which is up 3.9%. Q3 results are due on Oct. 20.
Fri, Oct. 2, 12:13 PM
- Hammered over the last several months as macro concerns and plunging local markets took a toll, U.S.-traded Chinese tech stocks are up strongly (CQQQ +3.2%) today even as the Nasdaq and S&P post modest declines.
- Web/mobile stocks posting big gains include giants Alibaba (BABA +5.3%) and Baidu (BIDU +4.5%), with the former naturally taking Yahoo (YHOO +4%) higher with it. Yahoo rose earlier this week after stating it's still pushing ahead with a spinoff of its 384M-share Alibaba stake.
- Other gainers include Vipshop (VIPS +6.6%), SouFun (SFUN +6.2%), Qihoo (QIHU +6.7%), Youku (YOKU +5.8%), Jumei (JMEI +8%), Bitauto (BITA +5.3%), Weibo (WB +5.9%), Jumei (JMEI +8%), and Cheetah Mobile (CMCM +6.6%). Online travel leaders Ctrip and Qunar are also up big, possibly aided by new efforts from Beijing to boost Macau tourism.
- Solar winners include Yingli (YGE +4.1%), ReneSola (SOL +5.6%), and Daqo (DQ +9.4%).
- ETFs: KWEB, QQQC, EMQQ
Mon, Sep. 28, 5:43 PM
Mon, Sep. 28, 5:37 PM
- Yahoo (NASDAQ:YHOO) discloses its board recently authorized the company to continue pursuing the spinoff of its 384M-share Alibaba stake, in spite of the IRS' recent decision not to grant a private letter ruling stating the spinoff satisfies its active trade or business (ATB) requirement. It still aims to finish the transaction in Q4.
- Yahoo cautions the spinoff is still "subject to certain other conditions, including final approval by Yahoo's Board of Directors, receipt of a legal opinion with respect to the tax-free treatment of the transaction under U.S. federal tax laws and regulations, the effectiveness of an applicable registration statement filed with [the SEC] and compliance with the requirements under the Investment Company Act of 1940, and other customary conditions." The company notes an IRS official recently stated new guidance planned for tax-free spinoffs won't apply to transactions that occur before the guidance is issued.
- Shares are up 3.1% after hours to $28.45, after falling 5.3% in regular trading amid a market rout.
Mon, Sep. 14, 2:54 PM
- Alibaba (BABA -3.3%) has sold off after Barron's published a lengthy bearish piece questioning the Chinese e-commerce giant's valuation, growth outlook, corporate governance, non-core investments, and user metrics. Yahoo (YHOO -2.9%), whose 384M-share Alibaba stake is now worth $24B, is along for the ride.
- Alibaba SVP Jim Wilkinson published a lengthy rebuttal to Barron's' column, Among other things, he questioned the logic of comparing Alibaba's valuation to eBay's, noted Alibaba derives the lion's share of its revenue from wholly-owned subsidiaries rather than oft-criticized variable-interest entities (VIEs), and took issue with the numbers cited for average U.S. e-commerce spending and Alibaba's average annual user spend.
- SunTrust's Bob Peck is also defending Alibaba. He estimates Alibaba's average customer spent $1,150 on its site last year, less than the $1,600 spent by the average U.S. shopper. Barron's, suggesting Alibaba's numbers were questionable, indicated the average Alibaba shopper spent 26% more than the average U.S. online shopper.
- Peck also argues Jack Ma's 2011 decision (criticized by Barron's) to transfer ownership of Alipay to a private partnership controlled by Ma was necessary due to Chinese banking regulations. Alibaba is currently entitled to 37.5% of Alipay parent Ant Financial's pre-IPO profits, and a 37.5% equity stake at IPO time.
Tue, Sep. 8, 4:55 PM
- The IRS has notified Yahoo's (NASDAQ:YHOO) lawyers it isn't granting the company's request for a ruling declaring the company's planned 384M-share tax-free Alibaba (NYSE:BABA) stake spinoff meets its active trade or business (ATB) requirement. Yahoo has withdrawn its request for a ruling.
- Yahoo: "At the same time, the IRS indicated that it had not concluded that the proposed spin-off transaction was taxable and therefore was not ruling adversely on the request ... Work proceeds on the pending Aabaco spin-off plan. Yahoo’s Board of Directors will continue to carefully consider the Company’s options, including proceeding with the spin-off transaction on the basis of an opinion of counsel."
- Yahoo has fallen to $29.53 after hours. Alibaba is up 0.4% to $61.15, after falling 4.7% in regular trading in the wake of cautious remarks on calendar Q3 GMV growth. Yahoo fell in May after an IRS official's remarks about active business requirements for a spinoff stoked fears of an unfavorable ruling. The company has said it would attach its small business service unit to the spinoff in order to meet ATB requirements.
Tue, Sep. 8, 1:09 PM
- During a Citi conference talk (webcast), Alibaba (BABA -1.8%) IR chief Jane Penner provided cautious remarks about FQ2 (calendar Q3) GMV growth, and noted expectations have recently been lowered.
- Up as much as 4.5% this morning as markets rallied, Alibaba has turned negative over the last hour. Yahoo (YHOO - unchanged) is nearly flat after previously rising as much as 3.5%.
- Alibaba's Chinese marketplace GMV rose 34% Y/Y in FQ1 (36% excluding a Chinese online lottery suspension), a slowdown from FQ4's 40% and FQ3's 49%. Concerns about the impact of slowing Chinese GDP growth have been running high.
- Citi is defending Alibaba, arguing Penner's remarks have been taken out of context and that she qualified them by adding expectations haven't changed in a dramatic way.
- YTD, Alibaba is down 40%. Shares now trade for 18x an FY17 (ends March '17) EPS consensus of $3.40. FY16 and FY17 revenue growth consensus estimates are respectively at 26.1% and 31.1%.
- Update (4:04PM ET): Alibaba has closed down 4.7%, and Yahoo down 2.2%. Reuters has provided more details on Penner's remarks. Alibaba now expects FQ2 GMV to be lower by a mid-single digit % relative to prior forecasts, and sees growth for the international AliExpress marketplace to slow to a low-double digit clip due to Russian and Brazilian forex pressures.
Mon, Aug. 24, 8:03 AM
- Tech stocks in the U.S. are sharply lower in early action after the sector fell just as hard as broad market averages in China and Japan. Tech heavyweights aren't getting spared amid the carnage.
- Google (NASDAQ:GOOG) -4.1% premarket to $587.31.
- Apple (NASDAQ:AAPL) -5.1% to $100.38.
- Microsoft (NASDAQ:MSFT) -3.9% to $41.41.
- Facebook (NASDAQ:FB) -3.4% to $83.05.
- Yahoo (NASDAQ:YHOO) -6.6% to $30.75 and Alibaba (NYSE:BABA) is down 8.7% to $62.26 as concerns over growth in China mount.
- The Nasdaq 100 futures contract is off 4.8%.
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Wed, Aug. 12, 9:24 AM
- Alibaba (BABA - down 5.8%) beat FQ1 EPS estimates and announced a $4B buyback, but missed revenue estimates and reported Chinese retail marketplace GMV growth slowed to 34% Y/Y (36% excluding an online lottery suspension) from FQ4's 40% and FQ3's 49%. In addition, the company's monetization/take rate for Chinese marketplaces fell 19 bps Y/Y to 2.33%, thanks to a mix shift towards mobile (2.16% take rate, up 67 bps Y/Y).
- Yahoo (NASDAQ:YHOO) has slumped to $34.16 premarket. Alibaba and Yahoo also both sold off yesterday amid a market correction that followed the yuan's devaluation.
- Yahoo's 384M-share Alibaba stake is currently worth $27.9B; the company will officially be free to sell Alibaba shares on Sep. 19. Yahoo continues to push ahead with its plans to spin off the Alibaba stake into a separate, publicly-traded, company in Q4 (pending IRS approval).
Wed, Aug. 12, 9:13 AM
Wed, Jul. 8, 10:47 PM
- Yahoo (YHOO -2.6%) is jumping into the daily fantasy sports arena, a potentially lucrative field that is getting more crowded as big media firms pick out partners.
- The company launched its site to host daily and weekly games where fans assemble rosters and earn points based on game performance in those short-term competitions.
- An estimated 57M participants in the U.S. and Canada average spending $465 a year on fees and materials related to the short-term fantasy games, Ipsos says. That adds up to about $2.6B in entry fees, and potentially hundreds of millions in revenue for Yahoo.
- The space is dominated now by FanDuel and DraftKings -- the former of which has major investments from Comcast as well as KKR and Shamrock Ventures, and the latter with its own millions in venture funding and a relationship with ESPN. Both companies have been valued at $1B.
- Yahoo's not starting from scratch, though: Daily games are dependent on quick and voluminous data, which the company has been offering sports fans for years.
- Press release
- Previously: Blistering pace of growth at FanDuel (Jan. 13 2015)
Tue, Jul. 7, 11:08 AM
- Though not seeing the 10%+ declines witnessed by many U.S.-traded Chinese tech peers, Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) are down sharply following fresh overnight losses for the Shanghai and Shenzhen exchanges.
- Yahoo (NASDAQ:YHOO), whose 384M-share Alibaba stake is currently worth $29.4B, is once more following in Alibaba's footsteps. The Nasdaq is down 1.5%.
- Alibaba has made fresh post-IPO lows. Baidu is less than $7 away from a 52-week low of $176.69. Alibaba now trades for 21x an FY17 (ends March '17) EPS consensus of $3.72. Baidu trades for 20x a 2016 EPS consensus of $9.29.
Thu, Jun. 11, 2:53 PM
- After talking with tax lawyers and lobbyists, policy analysis/research firm Capstone thinks recent comments from an IRS official about potentially changing tax-free spinoff rules were "carefully choreographed" by the IRS and Treasury, and "designed to send a message to Yahoo (NASDAQ:YHOO) concerning the Alibaba spinoff, though neither company was mentioned by name."
- Capstone thinks an adverse ruling would have an $11B impact on Yahoo, whose 384M-share Alibaba stake is currently worth $33.7B. It also notes (citing a law firm) the aggregate value of all spinoffs occurring in 2012 and 2013 was respectively just $41B and $33B.
- Yahoo tumbled on May 19 after an IRS official stated the agency is reviewing rules on "spinoffs of trades or businesses that are small compared with a company’s other assets," but recovered a chunk of its losses after responding to the comments.
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