AABA
Altaba Inc.
TMT
11/14/2014
Presented
| Date | 11/10/2014 |
| Price | $49.05 |
| Market Cap | $46.50B |
| Ent Value | $36.51B |
| P/E Ratio | 6.57x |
| Book Value | $37.49 |
| Div Yield | N/A |
| Shares O/S | 0.00M |
| Ave Daily Vol | 34 |
| Short Int | 5.83% |
Current
| Price | $19.63 |
| Market Cap | $10.20B |
| Yahoo! Inc. operates as a technology company worldwide. The company offers Yahoo Search that serves as a starting point to navigate the Internet and discover information; and Yahoo Answers, which enables users to seek, discover, and share knowledge and opinions across mobile phones, tablets, and desktop. It also provides Yahoo Mail that connects users to the people and things; Yahoo Messenger, an instant messaging service; and Yahoo Groups, which enable users to join groups based on shared interests and involvements. In addition, the company offers digital magazines comprising Yahoo.com that brings together the relevant content; My Yahoo, a customizable homepage; Yahoo Weather, which provides users with weather conditions and information for various locations; Yahoo News, which offers news in text, photos, and video; Yahoo Sports that serves digital sports enthusiasts; Yahoo Finance that offers financial data, information, and tools that enable users to make financial decisions; and Yahoo Entertainment and Lifestyles, a collection of properties focused on various trends and information in culture, women’s issues, and media. Further, it provides video content through Yahoo Screen and Yahoo Smart TV; Flickr, a Web and mobile photo management and sharing service; and Tumblr that offers a Web service and mobile applications. Additionally, the company offers the Yahoo Bing Network that connects advertisers with an audience of various users; Native Advertising, which provides various ways for advertisers to engage their audience across devices on Yahoo’s network of consumer products; Yahoo Audience Ads, Yahoo Premium Ads, and Yahoo Video; and ad platforms comprising Yahoo Ad Manager, Yahoo Ad Manager Plus, and Yahoo Ad Exchange. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California, with additional offices in the Americas, Asia Pacific, Europe, the Middle East, and Africa. |
Please note, on 6/13/17 Yahoo! Inc. (YHOO) changed its company name and ticker to Altaba Inc. (AABA). The content of this idea will make reference to the original company name and ticker symbol.
Publicly traded companies mentioned herein: Yahoo Inc. (YHOO), Alibaba (BABA) and Yahoo Japan (4689 JP).
Highlights
The presenter is long Yahoo stub shares, which are created by simultaneously shorting shares of Alibaba (BABA) and Yahoo Japan (4689 JP). For every share of Yahoo, he recommends shorting out .24 shares of Alibaba and 1.3 shares of Yahoo Japan, thereby creating the stub at around $16 per share. The stub is a play on Yahoo’s core business as well as its ongoing use of cash, but more importantly it has the potential to capture the difference between the company paying a tax rate of 35% versus as little as zero, which the presenter calculates amounts to about $18 per share on a $16 stub. He sees the current set up as potentially highly asymmetric, with meaningful potential upside in a short period of time.
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