Market Overview

Bernstein Says Yahoo! Inc. Likely To Extend Gains On Alibaba IPO


Yahoo! Inc. (NASDAQ: YHOO) shares are likely to continue an upward tick over the next few days or weeks on expectation of gains from its holdings in Alibaba Group Holding, an analyst said Monday.

Yahoo traded up 2.6 percent in Monday's morning session.

Yahoo holds a 23 percent stake in Alibaba and expects to sell 121.7 million shares for up to $8 billion. It will continue to retain a 16.3 percent stake.

Earlier, Yahoo had been expected to sell 140 million shares.

Bernstein analyst Carlos Kirjner think's Alibaba's real value is higher than the $60 to $66 a share initial public offering price disclosed Friday. He said Yahoo holding on to the extra 18 million shares bolster's Yahoo's value.

Bernstein, who rates Yahoo at Outperform, said Yahoo may deal with its remaining stake through a dividend, spinoff or other method.

Latest Ratings for YHOO

Oct 2016DowngradesBuyHold
Oct 2016DowngradesBuyHold
Oct 2016MaintainsBuy

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Posted-In: Alibaba Group BernsteinAnalyst Color News Dividends Reiteration IPOs Analyst Ratings


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