Yahoo CEO Marissa Mayer recently took the stage at TechCrunch Disrupt New York to discuss a number of topics related to the company she runs. One of the bigger issues that came up was valuation and unsurprisingly, the chief feels her company is undervalued.
Yahoo’s acquisition spree and focus on mobile has been well documented. And whether or not her mobile strategy will pay off is slowly starting to be answered as evident by the company’s last quarter revenue incline helped partially by its 430 million mobile monthly active users.
As the publication notes, Yahoo’s stake in Alibaba is currently worth around $26 billion but that figure could increase depending on how the company prices its IPO. Additionally, their stake in Yahoo Japan is worth around $9 billion with Yahoo’s total market cap sitting at $34.4 billion.
It’s still way too early to know how things will all play out and if Mayer has indeed turned the ship in the right direction. If so, then she’s likely right in her belief that Yahoo is undervalued and again as TC points out, it’s a bit strange when a company is valued at less than its cash and equivalents – especially when profitable. That could happen if the market cap remains flat and Alibaba’s IPO goes over without a hitch.
For what it’s worth, Yahoo's stock dropped more than six percent on Wednesday but that’s not terribly shocking when you consider tech stocks in general have taken a hit recently.