Why A Worthless Company Can Still Have Huge Stock Growth
by Anthony Sibley (AJ) on Feb 15, 2015 | Views: 158 | Score: 0
|NSDQ Yahoo Stock Price (% Change)*||3rd Quarter Revenue (% Change)|
Year-over-Year Percentage Change
Stock Prices from Second Week of September
Sources: ycharts.com, cbsnews.com, mashable.com
Since the sixth CEO in five years took over, Yahoo, Inc.'s stock price has increased over 125%. Nevertheless, Wall Street investors consider the Yahoo to be worth effectively less than zero, as its assets are worth more than the company itself. Yahoo owns a share of the Chinese site, Alibaba, worth roughly $37 billion and a stake in Yahoo Japan worth over $8 billion. But Yahoo's market value is a mere $39 billion. While Yahoo's sites continue to be some of the most popular online, the company's core business has proven incapable of effectively monetizing its huge internet traffic.