Yahoo! Inc. (YHOO) Downgraded Because of Alibaba Group Holding Ltd (BABA) And Walgreen Company (WAG) Meets a Similar Fate

Yahoo! Inc. (NASDAQ:YHOO) which has been flying high before Alibaba Group Holding Ltd (NYSE:BABA)‘s IPO received a downgrading form Bank of America Corp (NYSE:BAC) today, and Walgreen Company(NYSE:WAG) joined the tech company owing to its own downgrade form Barclays PLC (ADR) (NYSE:BCS). TheStreet‘s Susannah Lee reported on the disappointing news for both the companies.

Yahoo icon

It has been a tough day for both Yahoo! Inc. (NASDAQ:YHOO) and Alibaba Group Holding Ltd (NYSE:BABA) in the stock exchange. However, Yahoo! Inc. (NASDAQ:YHOO) also had a bad start as the news of its downgrade came in the morning. Bank of America gave the explanation that Yahoo! Inc. (NASDAQ:YHOO) was no longer the best way to play Alibaba Group Holding Ltd (NYSE:BABA) anymore after the Chinese e-commerce giant held its IPO on Friday.

There was a hint of good news for Yahoo too as Bank of America increased the target price for the company in light of Alibaba Group Holding Ltd (NYSE:BABA)’s successful IPO which resulted in a better valuation for Yahoo as it has a significant stake in Alibaba.

More specifically, Yahoo! Inc. (NASDAQ:YHOO)’s price target was increased from $40 to $46. However, the market had other plans for today as both Alibaba Group Holding Ltd (NYSE:BABA) and Yahoo! Inc. (NASDAQ:YHOO) dived after the opening bell today. Yahoo! Inc. (NASDAQ:YHOO) is currently trading at $38.87 and Alibaba Group Holding Ltd (NYSE:BABA) at $90.03.

On the other front, the retail drug store chain, Walgreen Company (NYSE:WAG) didn’t have the best breakfast news either. Besides slashing Walgreen Company (NYSE:WAG) from overweight to equal weight in its portfolio, Barclays also significantly revised down Walgreen Company (NYSE:WAG)’s price target from $92 to $68. Barclays had doubts about Walgreen Company (NYSE:WAG)’s earnings guidance which it said didn’t seem as conservative as it did before.

Walgreen Company (NYSE:WAG) is currently trading at $60.38 which is about 4% lower from its price on Friday at the closing bell.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

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.