The CNBC "Fast Money" panel discussed an IRS announcement that might subject the Sunnyvale, Calif.-based company to extra taxes when it sells its interest in Chinese e-commerce specialist Alibaba (BABA). The panel agreed that the results of the IRS announcement were difficult to predict and that there was no reason to buy shares of Yahoo! immediately."Until we get some clarity on this issue, I wouldn't jump in right here," said panelist Karen Finerman, co-founder of Metropolitan Capital Advisors.
Panelist Steve Grasso, director of institutional sales at Stuart Frankel & Co., added that "there was a hell of a lot of room" for the stock price "to fall."
Yahoo! and Alibaba shares have dropped 18% and 15%, respectively, over the past year.
But the panel also discussed the possibility that investors would begin to look at Alibaba first instead of Yahoo! as a buying opportunity.
Guest Bob Peck, a managing director at SunTrust Robinson, said the tax implications for Yahoo! "were already being priced in." He said that his firm had a target price of 59 for Yahoo! and called the company, including Alibaba an "opportunity for investors." "You're getting the core for free and actually at a steep discount," Peck said.
Peck called the IRS announcement "ambiguous."
Panelist Brian Kelly, founder and managing member of Brian Kelly Capital, added that potential action by the IRS "would be hanging around for a while."
The panel addressed a Fast Money Halftime interview with Carl Icahn on Tuesday. The activist investor and chairman of Icahn Enterprises recently sent Apple ( APPL) CEO Tim Cook an open letter asking the company to increase its stock buyback program from $90 to $140 billion. Icahn called the idea "a no-brainer."
During the interview, Icahn said he expects Apple to develop a television, a product that has long been discussed but yet to reach markets. But Grasso did not think Apple would proceed with this initiative. "To have something hanging on the wall is a misfit," he said.
The panelists disagreed about purchasing shares of iconic retailer Wal-Mart ( WMT)
Retailers and supermarket chains are coming off weak quarters. Such companies as Kohl's (KSS), Whole Foods (WFM) and Dillards (DDS) have seen their stock prices drop in recent weeks. Finerman said she had just sold shares of Macy's (M).