In a program on CNBC, Jason Helfstein from Oppenheimer and Co. discussed Alibaba and how its roadshow in the US has elevated the anticipation and buzz about its upcoming IPO, which is going to be the biggest in the history of US markets. Helfstein also discussed Yahoo! Inc. (NASDAQ:YHOO), which has a 22.4% stake in Alibaba and expecting a lot of market push after launch of Alibaba in the US.
Helfstein said that Aibaba’s success speaks for itself. The company’s revenue growth went up by 41% to $11 billion and the company has depicted very strong margins of around 50%.
“[…] This company is going to be one of the winners and the road show really laid out what the opportunity is and tried to give you a sense of, you know, how further penetrated they are in the market […],” said Helfstein.
Answering the question about effect of Alibaba’s IPO on Yahoo! Inc. (NASDAQ:YHOO)’s stock, Helfstein said that he was expecting Yahoo’s stock to be somewhere around $43, but it’s closing just over $40. He agreed that Yahoo is still in the race because of Alibaba and if the Alibaba factor was not present, Yahoo would have suffered a lot because its current business is declining rapidly in the US. He claimed that most of the investors are reluctant about practically buying Alibaba stock. Helfstein is bullish about Yahoo and said that if Yahoo! Inc. (NASDAQ:YHOO)’s major potential is Alibaba, the downside is protected as Alibaba will certainly perform well.
CNBC’s Pete Najarian said that he is rating Yahoo! Inc. (NASDAQ:YHOO)’s stock potentially at $50 because after the Alibaba’s IPO, Yahoo! Inc. (NASDAQ:YHOO) will gain some ground in the market.
D.E. Shaw’s firm D E Shaw is one of the shareholders of Yahoo! Inc. (NASDAQ:YHOO), having approximately 16 million shares of the company