Tag Archives: yhoo

As Growth Investors Flee Apple, Warren Buffett Sees Value

Noted value investor Warren Buffett has picked up shares of Apple ( AAPL ) as growth investors have rotated out of the stock. Buffett disclosed in a regulatory filing Monday that Berkshire Hathaway ( BRKB ) bought 9.8 million shares of Apple, valued at $1.07 billion, at the end of the quarter. Buffett tends to focus on slower-growth companies that he believes are undervalued by the market, and he has not been a big tech investor. Meanwhile, hedge fund billionaire David Tepper has sold his stake in Apple, according to a filing with the SEC. Tepper previously held 1.26 million shares, last valued around $133 million, media reports said . On April 28, activist investor Carl Icahn said he had sold all of his shares in Apple. At one point, Icahn owned 53 million shares, or nearly 1% of the company. And Greenlight Capital’s David Einhorn also has been decreasing his stake in Apple. Drexel Hamilton analyst Brian White said Buffett’s Apple investment is a positive sign for the iPhone maker. “Although Buffett has admitted to not understanding technology, and thus avoiding the group for the most part (he also owns IBM ( IBM )), he is always on the lookout for a ‘wonderful company at a fair price,’ and we believe that is what he sees in Apple,” White said in a research report Monday. Investors soured on Apple after the Cupertino, Calif.-based company reported its first year-over-year sales decline since 2003 and its first-ever drop in iPhone unit sales in the March quarter. “In our view, Buffett’s investment in Apple speaks to a much bigger theme around the Apple story — the stock is meaningfully undervalued for such an excellent company with attractive long-term growth prospects,” White said. “In our view, the market gives Apple no credit for its expansive digital matrix across software, services and hardware that deliver a seamless experience for an installed base of 1 billion active devices.” Buffett also has confirmed that he could back a bid for Yahoo ( YHOO ) by Quicken Loans founder Dan Gilbert. Apple stock was up more than 3%, near 94, in midday trading on the stock market today . On Thursday, Apple stock fell to its lowest level in nearly two years, at 89.47. RELATED: Apple Gets Lift From China Ride-Hailing Service Investment .

Will Buffett Stand In Verizon’s Way, Snatching Up Yahoo?

Will Warren Buffett stand in the way of Verizon Communications ( VZ ) snatching up Web portal Yahoo ( YHOO )? That scenario looms amid reports that Berkshire Hathawa y ( BRKB ) Chairman Buffett is backing a consortium vying for Yahoo’s Internet assets. Quicken Loans founder Dan Gilbert is said to be pursuing Yahoo, with Buffett providing financial backing. Some former Yahoo executives have been advising Gilbert’s group on a bid, tech news website Re/Code reported. Buffett’s Berkshire Hathaway made its biggest-ever acquisition in 2015, buying Precision Castparts, a maker of aerospace components, for $37 billion. However, Buffett has not been a big investor in tech companies, with his large stake in IBM ( IBM ) a notable exception. Berkshire, however, just disclosed that it’s taken a nearly $900 million investment in Apple ( AAPL ) shares. “I’m an enormous admirer of Dan and what he has accomplished in Quicken Loans‎,” Buffett told CNBC . “Yahoo is not the type of thing I’d ever be an equity partner in. I don’t know the business and wouldn’t know how to evaluate it, but if Dan needed financing, with proper terms and protections, we would be a possible financing help.” Others in the hunt for Yahoo include big private equity firm TPG Capital and a group comprised of investment firms Bain Capital and Vista Equity Partners. Telecom and wireless services giant Verizon has been viewed as the front-runner for acquiring all or part of Yahoo. Verizon, which bought AOL in 2015 for $4.4 billion, aims to morph into a digital media company that garners more advertising revenue, as wireless data competition mounts. Yahoo recently added four new independent directors to its board under pressure by activist investor Starboard Value. While Yahoo CEO Marissa Mayer is in talks with possible buyers, a second round of bidding for Yahoo may not wind up until early June, according to various reports.

Next Yahoo Bidding Round Due ‘Around June’; Verizon, Others In Mix

Yahoo ( YHOO ) CEO Marissa Mayer is center stage as the Web portal moves toward a second bidding round, with Verizon Communications ( VZ ) and others in the mix, says a report from online tech news site Recode. The second round of bidding is expected “around June,” says the Recode report. Mayer remains in charge of a likely Yahoo sale after the Internet firm added four new independent directors to its board under pressure by activist investor Starboard Value. While Verizon, which acquired AOL last year for $4.4 billion, has been viewed as the front-runner, private equity firms TPG and a combination of Bain Capital and Vista Equity Partners will also be involved in the next round, says Recode. Earlier reports said Microsoft ( MSFT ) could provide some funding to a private equity firm to ensure that its relationships with Yahoo stays friendly. Microsoft tried to buy Yahoo in 2008. AOL Chief Executive Tim Armstrong reportedly is in charge of Verizon’s attempt to buy Yahoo. Mayer’s relationship with Armstrong , when they both worked at Alphabet’s Google, has been a topic of Internet media speculation. Mayer stands to get a $55 million payout if she’s forced out as CEO after Yahoo is sold, say reports. Yahoo stock was flat in afternoon trading in the stock market today , near 37. Yahoo’s market cap is near $35 billion, but the great majority of its value is its 15% stake in China e-com giant Alibaba ( BABA ), as well as its stake in Yahoo Japan. Analysts in general expect bids in the $5 billion to $8 billion range for Yahoo’s core business.