Yahoo touches $30 following Mayer talk, bullish Alibaba report

Sep. 12, 2013 2:08 PM ETAltaba, Inc. (AABA)AABABy: Eric Jhonsa, SA News Editor1 Comment
  • Yahoo (YHOO +2.7%) has crossed $30 for the first time since early '08 following Marissa Mayer's upbeat TechCrunch Disrupt talk, which was highlighted by comments about strong MAU growth, and an ABR Investment report assigning Alibaba a $100B post-IPO valuation.
  • ABR values Alibaba's core Taobao and Tmall consumer-focused e-commerce sites (~70% Chinese share) at a combined $81B, or 35x 2014E EPS. The Alibaba.com B2B e-commerce site (~40% share) is valued at $12B (25x 2014E EPS), as is the eTao search engine.
  • Other assets, including group-buying site Juhuashuan.com, payments platform Alipay, and investments in Sina and AutoNavi, are collectively valued at $12B. A 15% holding company discount yields a $100B post-IPO valuation.
  • Though ABR assigns steep multiples to Alibaba's core properties, the company's rapid growth (Q1 revenue rose 71% Y/Y) and market dominance, and the multiple expansion recently seen by both U.S. and Chinese Internet stocks, could lead investors to provide similar ones.
  • Alibaba is still reportedly wrestling over whether to list in Hong Kong or NYC.

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