Yahoo Stock Hits Lowest Point This Year on IRS Alibaba Setback

Yahoo (YHOO) stock continues to move lower as the IRS said it is reconsidering whether the tech giant can spin-off its stake in Alibaba (BABA) tax free. Yahoo shares fell to the lowest in 12 months on news the Internal Revenue Service isn't committing to staying with the rules that would have allowed Yahoo's sizable Alibaba stake to spin off into its own company tax free. Back in January, Yahoo CEO Marissa Mayer announced a long awaited plan for it to spin off 384 million Alibaba shares, worth billions. Investors loved the idea and shares soared. The possible lack of favorable tax treatment forces investors to look more closely at Yahoo's core business, which isn't all that exiting. Alibaba shares have also been under performing, recently falling below the IPO price. The Chinese e-commerce company also warned about sluggish sales.