The government hates it cause we're gambling the money and not spending it at Walmart or Best Buy and paying a guaranteed 7% sales tax on those items while adding to GDP. They can't add gambling losses into GDP numbers which looks bad for the party in charge. Just put a sales tax on it like legal marijuana or cigarettes are all of a sudden the government will love fantasy sports.
If Yahoo makes money, as in taking 10% of entry fees in fantasy sports, it's added to their revenue and then taxed. If the player makes money, there typically is no tax. Yahoo deposits money into the player's Wallet account and that's it. They leave it up to the player to report it as income and we all know that no one does. Now if it's a big prize like a million or something then I'm guessing there is some sort of tax ramifications. However, millions of daily games are being played where someone wins $100 and it's not taxed. This is different from the stock market where every trade comes with a 1099B.
How are these statements different?
1.) I really like Yahoo to go higher because of the Alibaba spinoff. Therefore, I think I will buy Yahoo stock to try to make a few bucks.
2.) I really like Adrian Peterson this weekend against the Packers. Therefore, I'm going to put him on my team to make a few bucks.
Yet buying stocks is legal because the government needs the tax dollars from the gains. Tax the winnings on fantasy sports and suddenly the government will love it.
There is no rumor. BABA already owns 18%. Baidu is not going to get into a bidding war because they know they'll lose. I doubt they'd make a higher bid just to run up the price on BABA. Between the shares BABA already owns and the insider shares, they already have the votes they need. Your vote doesn't matter. Sorry to break it to you.
Ok people, I get the whole transition from pc to mobile. This is obvious. However, this doesn't answer my question. Does Alibaba make more money from mobile transactions than it does from pc transactions?
So Alibaba makes more money from their mobile advertising than their non-mobile advertising? More mobile purchasing leads to Alibaba's ability to charge premium pricing for advertising on mobile?
Understood but I can use Paypal on my desktop. What's the benefit to Alibaba of someone using a mobile device to make the purchase via an online website? Sorry if my question is stupid. I'm sure the answer is obvious to someone more in the loop.
Keep in mind some of the milestones has total gvm while others have mobile only. Mobile is about 73% of the transactions so you can do the math to get the total.
It's a little behind but they update the numbers on their investor website. Search Alibaba investor relations and click on the alibabagroup page. Click on the "here" link within the paragragh highlighted in orange.
GFY! BABA has $17B in cash. They're buying the Chinese Youtube for practically nothing. This jabroni Chanos has the power to shave $10B off a market cap in less than an hour? Give me a break. I sold my YOKU today at 26.50 and I'm rolling those funds into BABA. Thanks for the gift Chanos you #$%$.
As I write this the price is at $26.30. Is it worth waiting until next quarter to get that extra 5%? Normally I'd say a 5% return in a quarter is doing well, but I'm tempted to cash out and put these funds to use elsewhere, like in BABA.
Yahoo's stake in BABA and Yahoo Japan is now $26.5B even if taxed at 35%. Add $5B in net cash to get to $31.5B. Divide by 940M shares to get to a share price of $33.5. The street values Yahoo at $2/share even if they pay tax on their investments.
Time Warner and Comcast, as they start to stream TV on the internet. These companies are in addition to Google, Microsoft, Verizon, Softbank, Alibaba and probably many others I've forgotten.