Yahoo! Inc. (NASDAQ:YHOO), which is currently trading at $42.56 is headed to $70 according to Jim Cramer, who is host of Mad Money and Co-Anchor of CNBC’s Squawk on the Street. He shared his opinions about the tech company today on CNBC with Carl Quintanilla, in the wake of the company’s earnings report.
Yahoo! Inc. (NASDAQ:YHOO)’s CEO, Marissa Mayer, has been in the spotlight for a long time since Alibaba’s IPO, but hardly in a good way. Her management style and inefficiency was the talk of the town, while she remained silent. This is the women who lets the numbers speak for her and using the Q3 earnings she effectively zipped the mouths of her critics, and that is as euphemistic an interpretation of the story as it can be. Cramer’s comments corroborated this.
“[…] I think she is slowly but surely getting the cash to be able to reinvent the company. Don’t look at the company now, look at what she bought. Now, if she just continues to buy back stock, the company is going to be, it will be a company that is a 100 million shares and it will be worth $70, if she keeps buying back […],” remarked Cramer.
It might be a bit too optimistic for Yahoo! Inc. (NASDAQ:YHOO)’s stock to reach that level, but Cramer can’t be blamed for getting a little carried away by enthusiasm that followed Yahoo!’s earnings release.
Moreover, while others were stressing that the clock is running out on Yahoo! Inc. (NASDAQ:YHOO), whose core operations according to many analysts were valued at $0, Mayer stayed calm. Instead of making pre mature merger or acquisition choices, she was doing the most unthinkable thing. Mayer was buying back some of Alibaba’s stock, as it felt that it was undervalued, while many others thought it was in fact quite the opposite.
“[…] She said she made defences, so that she was able to pull back a lot of stock from the IPO. That might be the smartest decision that a CEO of Yahoo! Inc. (NASDAQ:YHOO) has ever made. So, those who continue to attack her, better come up with more ammo because if you look what Google did to destroy this business, and yes, they are way too heavy in display which Google destroyed […],” said Cramer.
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.