AltabaVista? Jessica Altaba? is the new name for what’s left of Yahoo. The core business of Yahoo is now owned by Verizon and it is becoming part of a separate unit of the telecom giant called Oath. But Yahoo shares are still trading on Wall Street.
Yahoo sold its digital properties, like its fantasy sports, finance and news websites, as well as Yahoo Mail, Tumblr and Flickr, to Verizon. But Yahoo held on to its stakes in the Chinese e-commerce giant Alibaba and Yahoo Japan (YAHOF). The shares of what used to be known as Yahoo under the ticker symbol YHOO started trading as Altaba and trade under the symbol AABA.
Shares of AABA rose 4% in early trading Monday, largely because of a 4% rise in Alibaba’s stock. But there really is no good reason for investors to own Altaba. If you like Alibaba’s business model and are a fan of its enigmatic founder, Jack Ma, just buy Alibaba. That stock has done better than Yahoo/Altaba this year.
Altaba is essentially a holding company for Yahoo’s remaining shares of Alibaba. But if Alibaba tried to buy those shares back to regain control, it would get hit with a huge tax bill. Still, the sale of Yahoo’s main assets to Verizon has been good for many investors