"It's not just about their price in the market, which of course can swing based on the market's appetite for risk," he said. "Rather, I'm also pointing to earnings-related outperformance, or in the case of Yahoo!, a really easy-to-identify catalyst in the Alibaba IPO, which I still think will happen without a hitch in the third quarter. Therefore, I think investors are going to be forced to recalculate how cheap these companies are. They're essentially cheaper than they were a year ago."
The stock was up 2.3% to $33.85 at 2:49 p.m.
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Separately, TheStreet Ratings team rates YAHOO INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."