BABA stake = 384 million shares X $80 = $30.7 billion
Cash = $4 billion
TOTAL = $34.7 billion
Yahoo current market cap is $35 billion
hmmmm, very interesting.
It depends how much growth they show. Could get clobbered, but also could go very high, like Amazon if the growth is there.
Cold, there are a couple of analysts that have $60 plus targets on Yahoo. There are going to be some things that happen between now and the end of the year that can make that price happen.
Agreed. Trying to cheat unsuspecting shareholders. They aren't going to try to buy 3 million shares unless they know it's going to be much higher soon.
" Besides, much of the stuff sold on Amazon are sourced from Alibaba via Taobao or Aliexpress."
I think this is actually a factual statement. It's funny that Amazon's success is actually Helping BABA. If that's the case, BABA will become even bigger and more powerful.
Yahoo is trading as if their asian assets will be fully taxed, so what's the down side, really?
BABA + YJ stakes = $40 billion x 70% (30% tax) = $28 billion
Yahoo Cash and Core = $10 billion
$38 Billion / 948 million Yahoo outstanding shares = $40 per share
If BABA moves to $110, that could add $10 to Yahoo
If the spinoff is tax free, that could add another $12 to Yahoo.
But I just showed how Yahoo is currently trading at a FULLY TAXED valuation. That's why some analysts have $60 targets for Yahoo.
Richie, I'm watching Yahoo. When BABA moves higher to $110 or $120 later this year and Yahoo's tax situation is figured out, we could see a 50% gain in Yahoo stock.
So Amazon up $100. Market cap over $260 billion. Hmmmm, I think BABA could be at a market cap of $300 billion today with no problem.
We may end up seeing BABA at $120 by end of the year.