Yahoo! Inc. (NASDAQ:YHOO) and Alibaba Group Holding Ltd (NYSE:BABA) are companies which add substance to superstitions, because they make them work. The old wives’ tale in focus here is the spirituality of number 1. On CNBC Jim Cramer explained when you put four of these digits together to form a date, a new man made phenomenon called Singles’ Day is born, which has extremely healthy effects on both Yahoo! Inc. (NASDAQ:YHOO) and Alibaba Group Holding Ltd (NYSE:BABA)’s bottom lines.
Any date could have worked for the e-commerce party, but perhaps Jack Ma, Alibaba’s CEO and founder had the position of his company in mind in the e-commerce world, when he set that date back in 2009. Needless to say that it worked quite well for Alibaba Group Holding Ltd (NYSE:BABA). Meanwhile, Yahoo! Inc. (NASDAQ:YHOO) will also receive a Singles’ Day present, which it literally bought itself by investing in the Chinese e-commerce giant. Jim Cramer shed some light on the monetary advantages of buying Alibaba.
“[…] Don’t forget that you are also buying Yahoo! Inc. (NASDAQ:YHOO), how good is it that Marissa Mayer held back more than a 120 million shares from the IPO. This is the stock that has captured America’s fancy because we didn’t really follow single’s day before […],” said Cramer.
Cramer also discussed where he thinks Alibaba Group Holding Ltd (NYSE:BABA)’s stock price is headed. In his opinion a $120 support should be enough to counter the slowdown in interest in the post Singles’ Day environment.The stock was trading at $119.15, at the end of the trading day today.
“[…] I have just been using the $120 target because that is where it is equivalent to Facebook Inc (NASDAQ:FB). At that level you still get superior growth and profitability to Facebook, but that is the same multiple as Facebook […],” said Cramer.
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