Yahoo Inc.’s spinoff of its large stake in Alibaba Group Holding Ltd. can’t happen fast enough for investors, as that 384 million share stake is worth about $1.4 billion less in premarket trade Wednesday. Alibaba’s stock slumped 5.8% in premarket trade after the Chinese e-commerce giant reported fiscal first-quarter results. Since Yahoo announced it’s plan to spin off of its Alibaba stake, the value of that stake has dropped by more than $11 billion, from $39.53 billion at the Jan. 27 closing price of $102.94, to $27.97 billion at the recent premarket price of $72.85. Yahoo’s stock shed 4.6% in premarket trade. It has tumbled 25% since Jan. 27 through Tuesday, while the S&P 500 has gained 2.7%. The spinoff was originally expected to occur in the fourth quarter. Alibaba’s stock is set to open Wednesday at the lowest price in its 11-month history.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News