Yahoo! (YHOO) jumped 2.5% following an analyst upgrade based on Alibaba's valuation. Yahoo! has a 22.6% stake in the Chinese Internet company. Nathan said investors are discounting shares of Yahoo! because they are unsure of what CEO Marissa Mayer will do with the proceeds from the Alibaba IPO, and they are also pessimistic on Yahoo!'s core business. He is a buyer near $30, not $35.
Adami said Yahoo! should appreciate by $6 to $7 per share based on its stake in Alibaba.
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