Yahoo! Inc. (YHOO) Gets Buy Rating from TheStreet while Cramer Favors Buying Alibaba Stocks

Yahoo! Inc. (YHOO)

When the times are good, everything settles in fine and that’s what happening with Yahoo! Inc. (NASDAQ:YHOO). As the stock market is preparing for its biggest every IPO with Alibaba public offering next week, Yahoo’s shares are racing upwards on strong note.

Yahoo! Inc. (NASDAQ:YHOO) has seen as much as 20.72% increase in its share prices in the last one month and closed at $42.88 yesterday. Alibaba wave is definitely a good sign for Yahoo’s shares. Jim Cramer told the investors to get their hands on Alibaba’s shares after the IPO; however, if the company crosses $200 billion capitalization mark, investors should refrain from the shares. Cramer considers $200 billion to be the “absolute market cap” but considering the unlikeliest situation to happen, he suggests investors to buy them.

Yahoo! Inc. (YHOO)

Ahead of Alibaba’s IPO, TheStreet Ratings Team has favored Yahoo! Inc. (NASDAQ:YHOO)’s stock with a “Buy” rating because of multiple strengths shown by the company including 8.03% increase in its net cash flow as compared to the last quarter and high gross profit margin. On top of it, Yahoo’s shares are trading near their all-time-high, which is good news for the company.

Earlier, Alibaba’s shares are receiving an excellent response from the market, which could help Yahoo further. Kayla Tausche, CNBC, reported that as many as 3 dozen institutions have made bid in access of $1 billion for the desired number of shares, which is likely to inflate share prices. Cramer added that these bids are an assurance for institutions that they will get the desired number of shares and these bids do not signify a larger share demand from them. A higher share demand is likely to shoot up the overall evaluation of the company.

This article has been written by Prakash Pandey.

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