Thats over 120M shares. They can buy 1M shares every other day the market is open.
You are correct and here is why.
1. If Baba went to zero, YHOO stock would still be at 22. 12 for its cash, 10 for yahoo japan, and the core business.
2. Baba may move up slowly, but YHOO could get an offer and go from 43 to 63 overnight. 50% return on money in a day.
3. Yahoo makes 2B a year pretax on its core business.
So yes BABA investing directly is far less safe than as a proxy thru YHOO.
AMZN makes no money and will not be profitable for years. BABA is already profitable and growing faster than Amazon. New 52 week highs EVERYDAY now! Buy YHOO and get the shares and Yahoo cash with earnings too! Best way to own BABA.
BABA will release over 50 cents in earnings.
Out of the gate BABA is four times as profitable. Not to mention all the great things it will do with its new pile of cash. It could use its own stock and cash to TAKE back all of YHOO shares, and cash, and get the core business for free. A core business than would net them an extra 2B a year in profits.
Thats another free 20 cents a share to their earnings each quarter.
So if BABA does not put in an offer on YHOO, we may see Google or even FB do it.
Amazon is trying to do too many things at once.
Video on demand. All these pointless devices.
Let people use e-readers on their Ipads, tablets and phones. Stop reinventing the wheel.
The core business of selling items which they get a 10% cut is insanely profitable.
All these schemes and crazy plans for drone delivery and 3D phones is utter WASTE.
Google can have outlandish projects because their core search business is super profitable. Amazon has not shown how profitable it can be yet. Bezos runs this company like a non-profit setup to fuel his crazy dreams.
Prove to the street the company can make good money, THEN you can expand again into other markets.
Furthermore, Amazon should just BUY Fedex. Make Fedex their personal shipping service for all products worldwide.
Baba is gonna crush its earnings estimates. The street is used to Amazon and Twitter and Tesla that make NO money but grow fast.
Baba is growing fast and makes TONS of money. Cash will be pouring into BABA before and after earnings.
Also many Chinese are buying up BABA shares as they want to have the largest public company to be a Chinese one. At around 250 a share it would be.
Yahoo shares value is up $1B for the day on BABA alone.
Yahoo closed at its third highest close in years.
And keep in mind, Friday is the day that most buybacks are done. So if MM wants to add shares, she will do it tomorrow.
Google needs to buy Yahoo.
They would get $40B in Alibaba stock, $12B in cash. They could sell Yahoo Japan for $10, and get the core business and eliminate a competitor for only $8B.
8B for a competitor that makes 2B a year pretax.
So 36.4B in BABA shares, but they also are holding 12.5B in cash and equivalents.
So based on just those two things, no other assets, no valuation to their 2B a year pretax income, the total value is 49B.
The current value of the YHOO on paper is only $41.2B.
So Yahoo can be held as a FUND that owns BABA and has cash on the books.
Its the SAME ship. YHOO has 410M shares of BABA. YHOO is 100% tied to BABA. But it also holds 12B in cash and other assets FREE!
You idiot. YHOO holds 410M shares of BABA. If you are short BABA, then you would hate YHOO.
You are too stupid to post on these boards.
BABA will close over its 52 week closing high today. As should YHOO.
I expect big news next week from activists. They are accumulating shares tomorrow as is MM.
YHOO owns 402 million shares of BABA. Thats 37 billion dollars. The company YHOO is only valued at $41 billion dollars.
And YHOO has 12B in cash on its books.
So if you want cheap BABA shares, just buy YHOO. YHOO is basically a closed end fund that holds over 400B in BABA stock. It also makes 2B a year in income from search pretax.
Baba is rolling up to 100 quite efficiently. That will be yet another data point that will spur buyout of YHOO. Baba at $250 means YHOO would own 42B worth of that stock. Which exceeds the entire value of YHOO currently.
Prospective buyers get all of Yahoos cash, Yahoo Japan, Tumblr, and the core business for 28 bucks, Yahoo breakup value would be $70 a share.