Yahoo Shares plunged heavily in the three last days of trading because alibaba transferred the property of Alipay (China´s biggest electronic payment system) into a company where Alibaba´s CEO is the biggest stockholder, thus taking control of the company. This news made yahoo shares tumble 20 % in 3 days.
I think that is an overreaction of the market , this plunge means that the market values Yahoo´s share in Alipay in 20% of yahoo´s value . M eaning that AliPay is worth more than Yahoo as a whole? I don’t think so.
*this article or any of the previous or following ones does not constitutes any investment advice or suggestion. Disclosure : I do not hold currently shares of Yahoo .
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