T. Rowe Price: BABA And Qualcomm Attractive, But Yahoo A 'Struggle'

Josh Spencer from T. Rowe Price was on CNBC Thursday to discuss his views on Alibaba Group Holding Ltd BABA, QUALCOMM, Inc. QCOM and Yahoo! Inc. YHOO.

Alibaba

“After the strong singles day performance which is a big holiday in China in November, where they posted more than 60p growth, Spencer said. “The fact that they came in at only 40p growth for the quarter has people little bit disappointed and some of that is that the take rate is lower on mobile devices and mobile has been growing so fast. I would take a bigger picture view and say 40p growth is still very fast, still a dominant e-commerce company in China and it just [trades] over 20 times the 2016 estimate. I think, it’s an attractive place to add to the stock.

Qualcomm

“Qualcomm is a tremendous value, very dominant position in basement chips and then they have this great royalty business where they effectively clip a royalty on every smartphone sold around the world,” Spencer said.

“ Now of course that’s been in dispute especially in China…last night Qualcomm actually announced that one of their licensee dispute was settled and the problems they had was more on the chipset side. Actually, I think the royalty business is a lot more important and will drive the long-term value of Qualcomm.”

 Yahoo

“I have struggled a little bit with Yahoo, probably because I own Alibaba, I own SoftBank. I think, there are better vehicles to take advantage of the Alibaba stake and I like what Softbank has in some of their other investments and I am not as optimistic about Yahoo’s core business,” Spencer added.