Why Yahoo Stock Is Getting Slammed Right Now

Jack MaJack Ma

Photo: www.forbes.com

Yahoo stock is getting hammered right now. It was down 8% when we started writing this post.Yahoo’s Asian asset, the Alibaba Group, handed over a controlling interest in a company called Alipay to Jack Ma.

 “Investors valuing Yahoo on its sum of the parts will have to remove Alipay from the equation,” according to Stifel Nicolaus analyst Jordan Rohan.

UPDATE: Another analyst – who’d prefer not to be named – calls this view “moronic.”

“It’s a hit for sure, but Yahoo will get compensated. Besides, most analysts placed very little valuation on Alipay in their models. 98% of Yahoo’s Asian asset value comes from Alibaba.com, Taobao, Yahoo Japan.”

“Alipay could jack up its rates, cutting out taobao, which will then decrease its value. It epends how much Jack Ma wants to f— Yahoo.”


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