Profit taking is taking place this morning clearly expected but this baby got a long way to go up up. Alibaba IPO hype is starting to level off, howeve more upside defending what is the IPO market valuation will be. But then after Alibaba Group here comes another money train in the trail for YHOO that is Yahoo Japan baby with 35% stakes of gold owned by YHOO baby!! Then we will finally talking about how MM how is doing to get YHOO Core moving in the fast growth mode. This baby will be trading in the $30's after completion of Alibaba IPO and news about YJ deal about to start.
Company has nearly $30 billion in cash equivalents if it sold all assets today. If stock stayed here, company could buy all its shares. It's a simple story about how powerful stock buybacks can be (See TRV). If in a few years they get shares outstanding to 500 million, then there is no way the stock trades under 40. Even the company doesn't grow, its EPS would be nearly $3.75. P/E would be 11.