Yahoo Is Not Having A Good Day

One look at YHOO stock and one wonders just what is the creative way that the market, if not Gene Munster of course with his upgrade last night from $4 to $48, believes Marissa Mayer will create several billion in value. Negative value that is.

Why several billion? Because when one strips out the 22.6% stake YHOO owns in Alibaba at its current market cap, the net value one gets is just shy of negative $10 billion.

Yes, we know that YHOO will actially pocket some $8.3 billion from the IPO proceeds at the $68 IPO price (thus lowering its EV), and yes, we know it will be left with "only" 16.3% of BABA after said transfer, but we also do not account for Yahoo's stake in Yahoo Japan, all of which should roughly wash out.

Which means that as of this moment, the value of YHOO has never been lower, as in more negative.

Finally, not helping matters is that BABA longs are actually using YHOO as a short to hedge their long exposure.

Which makes us wonder: just which magazine will Marissa Mayer pick for her next photo centerfold? Because after all, when faced with record value destruction, the only option is, well, distraction.

Comments

[Stoploss]

LOL!!!

[Bangalore Equit...]

Listen. That's not "NICE".

[flacon]

Baahhh Baahhh  Oh Baaahhhh Maahhhh - you couldn't make this shit up if you tried. 

[max2205]

Baba buieeeee

[NoDebt]

"not helping matters is that BABA longs are actually using YHOO as a short to hedge their long exposure"

Tricky bastards.  I would not have thought of that.

[Citxmech]

Bitcoin is having a shitty day too.  Below $400 right now.

Ouch.

Poor Gh0atrider/Fonestar.

[Gringo Viejo]

Nevertheless, YAHOO does serve a purpose. Its discussion boards allow the illiterate to exchange "ideas".

[StupidEarthlings]

Yea..I was gonna ask..WTF does yahoo do anyway. ??

I had a yahoo dating acount about 10 yrs ago..I thought they went away with aol and compuserve...

Holy fuck..they still exist...

Wow.

[SAT 800]

Well, it's still traded, so you can short it; that's a useful function.

[bpj]

Their Roku TV is not half bad, I don't know how much value it adds though.

[markpower49]

Women will ruin all that men create if allowed to do so. Send Marissa to cooking school.

[pFXTim]

heh...it wasn't this CEO that screwed the pooch at yahoo...it's more likely the teeming (and I do mean teeming...I knew a guy who worked there once...the place resembled a Bombay Bazaar during lunch hour) throngs that make up the workforce...milking this company for all it's worth before ultimately drifting off into oblivion...

[bluskyes]

like IBM?

[pFXTim]

exactly...not to mention a myriad of others...

[SAT 800]

Yeah, and ATT&T before reality hit. Like the US Army; all chiefs and not indians doing anything.

[bluskyes]

hah! except in IBM's case, the problem is that there are too many Indians.

[junction]

Yahoo spent $30 million for SUMMLY, an app cobbled together by a 17 year old Brit teenager.  That app is now Yahoo News Digest.  How much money is Yahoo making from its rejiggered version of SUMMLY?  Sure, the Yahoo news app is downloaded and is now available for the new iPhone.  But what is Yahoo's return on its investment?  Or is Yahoo News Digest like a shale fracking well, a hole in the ground you pour money into.  A hole with no longterm return.  

[Stoploss]

Is Vogue hiring cover models?

[NotApplicable]

Want a good day? Observe fools falling for the "iOS 8 Wave" feature, and microwaving their phones.

http://imgur.com/gallery/IYP7dWE

[i_call_you_my_base]

Fantastic.

[sleigher]

That rules

[NoDebt]

Excellent.  Best comment of the bunch:  "As an Android user, I'm furiously masturbating right now."

Thanks for the laugh.

[FuzzyDunlop21]

God bless whoever came up with this brilliant idea. Thanks for sharing NA

[SAT 800]

purrrfect. LOL.

[bluskyes]

Bullish for Apple

[SAT 800]

LOL.

[i_call_you_my_base]

No one cares about value.

[BandGap]

Not to hijack the thread but.....

http://www.telegraph.co.uk/finance/commodities/11104055/Super-rich-rush-to-buy-Italian-Job-style-gold-bars.html

[cart00ner]

BooHoo yahoo! :(

Capitalist pigs! STBU... BWHa ha ha ha ha ha ha!

[SheepDog-One]

Must.....buy moar........stawks.....*wheez*......*gasp*.....

[Downtoolong]

Hey sheeple, aren’t you glad you listened to this guy today.

http://blogs.barrons.com/techtraderdaily/2014/09/19/alibaba-opens-at-92-70-up-40/?mod=barrons_msnhttp://online.barrons.com/article/BL-TB-45088.html?

Meanwhile, you should pay no attention to the fact that Yahoo is down over 5% on the day, even though they still own almost 20% of Baba and just raised $9 billion in cash from this IPO.

Yea, that makes sense (?????)

I’d love to hear what Barron’s has to say about that.

Enjoy the magic show. Just don’t ever expect them to reveal the tricks, even if you show them you figured it out on your own.

[Bangalore Equit...]

Listen. I'll "DRINK" to that and since I only have 1 oxy left I'm not going to snort this one I'll ingest "ORALLY".

WoooHoo, go BA BA!

[SAT 800]

Do you have any you could afford to sell ?

[Ness.]

Enjoy the magic show. Just don’t ever expect them to reveal the tricks...

"Illusion, Michael.  Tricks are something a whore does for money.... or cocaine" ~ GOB Bluth

[CHX]

Yahoo looks like a silver chart... 

[SAT 800]

Yahoo looks like; "Short me Please, I love Pain".

[oklaboy]

yahoo, isn't that chocolate milk in a bottle?

[Yen Cross]

 Yahoo is CLUNKY... Just like like logging in and out of their email.

[Squid Viscous]

Cramer said to buy, the other night at 43 or so...

[Spastica Rex]

Super Marissa Mayer can't rescue Yahoo? Quick - make her CEO of some other company!

[Metalredneck]

Lean in, Bitchez...

[I Write Code]

Sounds accurate to me.

[Hongcha]

A few years ago, Yahoo! quite deliberately lowered the bar yet again for Amerikan readers, particularly African-Americans.

Their news reporting is easily the most moronic of any major media organ I have ever seen in Amerika; to whit,

"Jay-Z Be HellaPissed at Germayne's slit-cut shorts."  This is a headline, folks.  Avoid.

I do still like the way they marshall stock info and go to Yahoo! Finance to look at numbers, when I don't need real-time.  But avoid the reporting there too.

[Jack Sheet]

But also the new home of Lauren "Cameraman up the legs" Lyster !

[orangegeek]

so what?

I'd still take a run at Marrisa Mayer.

Strawberry sundae Marissa?

[bpj]

I don't get why Yahoo sold their shares at the IPO rate of $68, why wouldn't they waited for more hysteria in Ali baba? anyone?

[scubapro]

this article doesnt make sense.  

if baba is worth some $180B and yahoo owns 22% of it, that is about $40B  in value just from BABA.     Given that at $4/share yhoo market cap is $41B.   im no phd economist, but it seems if you buy yhoo you get baba and all the yhoo business is free.   this is like when ebay owned paypal.

comments?

[juggalo1]

Classic market inefficiency issues.  I heard many recommendations to buy Yahoo based on their holdings of BABA.  Now that's no longer a reason to own Yahoo.  If you want BABA, you can buy BABA.  All for the best.  Yahoo should demonstrate value on it's own.  It looks to me like it is worth something, which indicates that a long yahoo short baba pairing is can't lose.