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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.

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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.

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