Vetr Crowd Downgrades Yahoo, Also Dislikes Alibaba
- After gaining more than 5 percent on Wednesday, shares of Yahoo! Inc. (NASDAQ: YHOO) were lower by more than 1 percent by late Thursday morning.
- As Yahoo's Board of Directors convene to discuss strategic alternatives, the Vetr crowd has turned bearish on the stock.
- The Vetr crowd downgraded Yahoo's crowd-sourced rating to 2.5 stars (from a previous three star-rating)out of a possible five stars.
Various media sources reported on Wednesday that Yahoo's Board of Directors are convening to discuss several strategic alternatives, including the potential sale of its core Internet business.
Shares of Yahoo gained more than 5 percent on Wednesday following the report but gave back some of its gains on Thursday. Meanwhile, Cantor Fitzgerald's analyst Youssef Squali maintained a Buy rating on Yahoo's stock with a $44 price target with further potential upside to $47 a share.
Vetr Crowd Disagrees
The Vetr crowd, a crowd-sourced stock ratings platform, downgraded shares of Yahoo to 2.5-stars out of a possible five – indicating a Sell rating. The crowd-sourced cumulative price target of $34.64 also implies a potential 1.5 percent downside.
Despite a bearish outlook, Yahoo remains a popular stock among the Vetr crowd as more than 4 percent of the crowd are holding Yahoo's stock in their wish-list. Fifty-four percent of the crowd is bullish on the stock with a Buy recommendation while 35.5 percent of the crowd are bearish with a Sell recommendation.
The Vetr's crowd bearish view of the stock also extends to Alibaba Group Holding Ltd (NYSE: BABA) – the China-based ecommerce company in which Yahoo owns a $30 billion-plus stake. Only 35.4 percent of the Vetr crowd recommend a Buy rating on shares of Alibaba, 14.6 percent recommend a Hold rating while 50 percent of the crowd recommend a Sell rating.
The Vetr crowd's outlook on Alibaba's stock is not much different from their outlook on Yahoo. The crowd-sourced price target of $85.10 implies a roughly one percent upside to Alibaba's current stock.
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