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10.31.07
Alibaba's IPO Plays With Yahoo's Stock
 By
Doug Caverly
Up and down, down and up - it just sort of meandered along for a while.
But on Friday afternoon, Yahoo's stock took more of an "up, up, and away" approach due to Alibaba.com's impending IPO.
As we first reported 20 days ago, Yahoo intended to buy about ten percent of Alibaba's available shares.
The full effect of this may not have been fully computed until the end of last week, however, when an American Technology Research analyst announced that the move could add $2.50 per share to Yahoo's stock.
That news alone (the IPO hadn't occurred yet) was enough to bump Yahoo's stock up about $2.30 (it closed at $33.63).
The climb continued for a short while on Monday; investors slowed down after passing the predicted gain of $2.50.
Then an apparent problem struck in the form of Alibaba's planned-for IPO - Yahoo's stock began to slide, and dropped as low as $30.20 per share. It's now back to $31.03, and appears to have leveled off, but this wasn't remotely the way Yahoo wanted things to go.
Still, since other American companies (read: Google) haven't had much luck in China, these developments aren't disastrous.
Yahoo already owns a 39 percent stake in the Alibaba Group, and an additional investment in Alibaba.com should only strengthen its hold in that market.
Meanwhile, Google's stock is sitting at exactly $700.00.
About the Author:
Doug is a staff writer for WebProNews. Visit WebProNews for the latest eBusiness news.
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