By Tyler Durden at ZeroHedge
One look at YHOO stock and one wonders just what is the creative way that the market, if not Gene Munster of course with his upgrade last night from $4 to $48, believes Marrissa Mayer will create several billion in value. Negative value that is.
Yes, we know that YHOO will actially pocket some $8.3 billion from the IPO proceeds at the $68 IPO price (thus lowering its EV), and yes, we know it will be left with "only" 16.3% of BABA after said transfer, but we also do not account for Yahoo's stake in Yahoo Japan, all of which should roughly wash out.
Which means that as of this moment, the value of YHOO has never been lower, as in more negative.
Finally, not helping matters is that BABA longs are actually using YHOO as a short to hedge their long exposure.
Which makes us wonder: just which magazine will Marissa Mayer pick for her next photo centerfold? Because after all, when faced with record value destruction, the only option is, well, distraction.
The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.
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