An aside: Yahoo owns 20% of Alibaba, which sported a market cap - TopicsExpress



          

An aside: Yahoo owns 20% of Alibaba, which sported a market cap of $226B as of 3 p.m. today. This 20% holding means that Yahoos Alibaba stock is worth $45B. For some reason, the market is valuing the entirety of Yahoo at $40B right now. How can the company be worth less than the value of its Alibaba shares? Im going with unwarranted pessimism. The market is valuing Yahoo at a massive deficit, assigning (worse than) no value to its core business (which generated $5B in revenue and $1.2B in profit last year), and a -$5B to its Alibaba stock. Even if Yahoos core business tanks, theres money to be had. Disclaimer: I own Yahoo stock and Yahoo Sept 26 Calls @ $41. Im also entirely unqualified to offer investment advice.
Posted on: Fri, 19 Sep 2014 20:06:26 +0000

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