most models are based on a favorable tax outcome so unfortunately, all estimates will be majorly impacted by this development. i think most on the street will be shocked by this situation as most thought that Mayer's ties to Obama would help the company seamlessly bypass a major tax event. You're looking at cutting the value of the holding by 40% - it's a major haircut and one that will probably run the stock back down to the mid 20s, if BABA continues to suck wind. If Baba goes up, I'm sure YHOO will recover.
The challenge is that Mayer, for all the good that she's done and she's found a way to reignite the company, seems a bit too high on her high horse and that's her reputation . . . she's a tech geek with a pretty face and designer clothes and that, that my friends is a dangerous combination.
I have a standing sell limit order at $77 so look forward to getting filled! Glad i entered this order last night!!
Be careful very careful at these levels . . . BABA value is going to drop in an astounding fall. As China goes, so does BABA. YHOO only has BABA to rely on, No one wants core.
and equal weight. The wall street games never ended. 2000 IPO Crash and pay to play (ie give a good rating, get investment banking work) still exists!
It's been parabolic for 2 years and broke all major support earlier today. Still heavy sell orders need to get filled, since the news was spilled towards end of day. The issue is, when you have a stock that is solely tied to one event and doesnt have the foundational support and earnings and revenue growth, this is the fundamental risk. Even after a 7% sell off, the stock is sell valued at a whopping $39 BILLION!. THINK, is YAHOO really worth $39 BILLION? It needs to correct back to a $30 BIllion market cap, more in line and you're looking at a run back down to $30.