Alibaba IPO could be ‘huge’ for Yahoo shareholders: Sizemore


Wall Street is abuzz as Chinese internet giant Alibaba reportedly prepares to file paperwork for what could be one of the biggest initial public offerings in history.

Sizemore Global Macro portfolio manager Charles Sizemore was recently interviewed by E-Commerce Times for his insights on the expected IPO and how it could affect Yahoo (YHOO), which owns a stake in Alibaba.

According to the report:

“The impact will be huge for Yahoo shareholders,” Charles Sizemore, a portfolio manager on Covestor, told the E-Commerce Times.

“Subtracting its cash in the bank and its Alibaba stake, the market is awarding Yahoo a valuation of close to zero. Why? Outside of Alibaba, Yahoo’s revenues are skimpy. Yahoo commands about 4 percent of the online ad market, vs. over 50 percent for Google,” he pointed out.

Read the full article at E-Commerce Times.

Photo credit: Maverick Fang via Flickr Creative Commons.