NEW YORK (TheStreet) -- Shares of Yahoo! (YHOO) fell off 2.06% to $41.71 in morning trading Tuesday after CNBC reported Alibaba planned to price its IPO within its increased range of $66 to $68, rather than at the speculated amount of $70 or more.
The network reported advisers have recommended a price of $68 a share, which would value the Chinese e-commerce company at $167.6 billion. The initial public offering's proceeds would total $21.8 billion, of which $8.4 billion would go to Alibaba. The official pricing could come later on Thursday.
Yahoo! is selling 121.7 million shares in the IPO for what would be a pretax value of $8.3 billion at $68 a share. The company would have 401.8 million shares after the sale for a pretax total of $27.3 billion, a 16.3% stake in Alibaba.
More than 37 million shares had changed hands as of 11:35 a.m., compared to the average volume of 23,080,600.
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 largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations, expanding profit margins and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."