Speaking on CNBC's Fast Money on Friday, Josh Brown and Mike Murphy explained their arguments on a future direction of Yahoo! Inc.'s YHOO market price.
Mike Murphy is bullish on the stock because of the value of the company's assets. He explained that Yahoo! owns 23 percent of Alibaba, which has a valuation of $35 billion, while its stake in Yahoo Japan is worth approximately eight billion dollars, and it has three billion dollars in cash.
Based on these numbers, Murphy feels that the stock is worth somewhere between $40 and $50.
Josh Brown thinks that the market has already priced in the information about Alibaba. He is not a buyer because Yahoo! is planning to use six billion of 12 billion dollars of the proceeds from the sales of Alibaba shares for investments, and Marissa Mayer doesn't have a great track record in that area.
Brown thinks that once the Alibaba IPO gets out of the story, people are going to start selling. He added that there is no growth in Yahoo's business, and the earnings are going to be lower over the next couple of quarters.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
