Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Yahoo! Inc. (YHOO) Remains A Strong Buy Despite Of Not Meeting The Expectations

Yahoo! Inc. (NASDAQ:YHOO) remains a strong buy despite a disappointing showing on first -quarter earnings that saw it miss Wall Street estimates. Speaking on CNBC, Raymond James senior analyst, Arron Kessler, reaffirmed a $61 per share price target on the stock, despite valuing the core search business at ‘zero’.

Yahoo, is YHOO a good stock to buy, NASDAQ:YHOO, Marissa Mayer, exasperation, Erin Griffith, Wall Street, trader bait, Yahoo Japan, NYSE:BABA, Yahoo Japan,

A big chunk of Yahoo! Inc. (NASDAQ:YHOO) valuation has been down to its stakes in Alibaba having had a poor run on its core search business. After the poor showing on earning fronts, CEO, Marissa Mayer is set to be under immense pressure to spin-off stakes in Alibaba, which should help compensate the near nothing valuation of the core business, affirms Kessler.

“The core business in our view remains challenged, we still think they are an arbitrage opportunity with Alibaba and the core business is respectively being valued close to zero in the mid $40 here. […] At the current levels you are effectively valuing Yahoo! Inc. (NASDAQ:YHOO) at Zero before we are given roughly $5 a share to make Yahoo core business. Effectively you are getting Yahoo for free assuming current levels of Alibaba,” Kessler said.

Kessler believes Mayer is being bashed for no reason on allegations that she has failed to trigger growth in the company. Mayer deserves some credit according to the analyst having been able to steer the company in the right direction seen by some segments of the business showing signs of growth even as the search business continues to struggle.

“They are investing in the right areas of mobile, native video and social that they talked about; we are still early across some of these initiatives so I think it is still early. I think if they can start to execute better across these initiatives maybe make a couple of small acquisition, then they are headed back in the right direction,” Kessler said.

There has been talk that Yahoo! Inc. (NASDAQ:YHOO) may need more activists on the stock as one of the ways getting things done especially in rejuvenating growth and spearheading massive shakeups. However, the analyst believes it is highly unlikely to see the likes of Carl Icahn getting involved with the stock as the company has budged to investors pressure to spin Alibaba Group Holding Ltd (NYSE:BABA) stakes.

I jsut made 84% in 4 daysI Just Made 84% in 4 Days By Blindly Following This Hedge Fund

I just made 84% in 4 days by blindly imitating a hedge fund’s stock pick. I will tell you how I pulled such a huge return in such a short time but let me first explain in this FREE REPORT why following hedge funds’ stock picks is one of the smartest things you can do as an investor. We launched our quarterly newsletter 2.5 years ago and not one subscriber has, since, said “I lost money by EXACTLY following your stock picks”. The reason is simple. You can beat index funds by creating a DREAM TEAM of hedge fund managers and investing in only their best ideas. I just made 84% in 4 days by blindly imitating one of these best ideas. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!