Yahoo! and the Effect of Alibaba’s IPO Getting Delayed

Yahoo! Inc. (NASDAQ:YHOO)’s stock price have taken a hit due to the pause by Alibaba to launch an IPO. Alibaba has been delaying this and the company has its own reasons, but this for sure is hurting Yahoo! Inc. (NASDAQ:YHOO)’s chances to boost its revenue.

Yahoo! Inc. (NASDAQ:YHOO)

CNBC’s Jim Cramer was discussing this on the “Mad Dash” yesterday and the discussion focused on what might be delaying the IPO and how it might hurt Yahoo! Inc. (NASDAQ:YHOO)’s share value. Yahoo owns 23% in Alibaba and if the Chinese e-commerce company delays its IPO, there would be very less left with Yahoo! Inc. (NASDAQ:YHOO) other than Alibaba.

Alibaba slowing the IPO doesn’t just impact Yahoo! Inc. (NASDAQ:YHOO), it might also impact JD. Alibaba looks like the only lifter for Yahoo! Inc. (NASDAQ:YHOO) and Cramer stated:

“How much has Marissa Mayer done? Because a lot of people just say listen Yahoo’s a shell, except for Alibaba.”

So, according to Cramer, the money raised from the IPO is a key measurement of where Yahoo! Inc. (NASDAQ:YHOO) is and if it doesn’t raise much money, there won’t be much left for it.

Alibaba’s net income growth last year was 305% and full year fiscal growth amounted to 52%. The net revenue growth was a little lower in the first quarter, in comparison with the last quarter of the year, mainly due to the money they spent on marketing. Cramer ended the conversation stating that the valuations of Alibaba by some industry analysts, estimating its value at $250 billion have been optimistic. However, he said even if Alibaba’s valuation is $200 billion, people would still buy Yahoo! Inc. (NASDAQ:YHOO).

Jat Capital Management owns about 7.6 million shares in Yahoo! Inc. (NASDAQ:YHOO) as of the end of March, while other key investors are Farallon Capital with approximately 5.7 million shares and Cadian Capital with around 4 million shares.

Things have been changing rather rapidly for Yahoo! Inc. (NASDAQ:YHOO) and if the IPO doesn’t get launched soon, there might be bigger problems to face.

Disclosure: None

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!