Yahoo! Inc. (NASDAQ:YHOO) can gain some $10 to $12 a share if the company manages to handle the remaining shares of Alibaba Group Holding Ltd (NYSE:BABA) in a tax efficient way, according to CNBC’s David Faber. It’s also believed in a grandiose raise of the e-commerce mammoth, which can add some $11.7 to its current price of approximately $98.3.
“People can continue to revile Marissa Mayer behind scenes as even worse. Then, what you read in the research ‘but what a stock’, because they own a lot of Alibaba and the stock is going higher. I think Alibaba goes to $110,” stated Jim Cramer.
Yahoo! Inc. (NASDAQ:YHOO) is obviously a stock to watch as Marissa Mayer is forcefully trying to turn things to her company’s favor, but it seems that the much awaited comeback is not soon to be seen. Now, what’s buying the company some time is the fact that Alibaba Group Holding Ltd (NYSE:BABA) is gaining muscle and it’s not even started the global conquering.
“If Alibaba goes to $110, and David, you do more work on this corporate tax and what they can do, then Yahoo’s going to go much higher. So, I understand the relation and I think it makes sense,” added Jim Cramer.
Yahoo! Inc. (NASDAQ:YHOO)’s stock already gained something close to 14%, at a price of about $44.6, in the last 5 days and this is more than the sheer 10.1% for the year to date growth statistic. The value per share for the once tech leader has been frantically swinging up and down with no clear picture of where it could head. The only clear picture that can be shaped out of this turmoil is how Alibaba Group Holding Ltd (NYSE:BABA) is performing. Hopefully, Yahoo! Inc. (NASDAQ:YHOO) will find a place to grow roots and monetize its services, because until the company starts to show growing profits there will be only speculative inferences about its activities.
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