A few days ago Yahoo Finance and Yahoo Futures traded at a near-zero price.
Today they traded above $8.5, a massive jump.
On the day the futures went below $8 they were trading at around $10, which means they are trading above the market.
That’s a huge gain for Yahoo Finance.
It’s a big deal because, as you might guess, Yahoo has a lot of stock in Yahoo Finance which is why Yahoo Finance is trading at a discount.
For Yahoo Finance to be trading at this price, Yahoo needs to get a large amount of Yahoo Finance shares out there, and there’s not enough of them to do that.
Yahoo Finance is now trading at $8 a share.
That’s a very big jump.
That means it’s now trading a lot higher than Yahoo Finance was trading before.
How much does Yahoo Finance trade?
For this example, let’s say Yahoo Finance trades at $10 a share and Yahoo has 1.4 billion Yahoo Finance securities.
This is $8 billion in Yahoo finance securities.
That makes Yahoo Finance a very valuable company.
But let’s look at how much Yahoo Finance has traded in the past.
Let’s say that Yahoo Finance had $10 billion in shares in its business.
That $10bn is $6.3 billion in stocks in Yahoo, which gives Yahoo Finance $6 billion in assets.
Now, that $6bn is not all that much.
You might think that it’s enough to buy everything in the market, but let’s be realistic here.
When the markets are trading at their current levels, you have to buy something.
If you have $6 Billion in assets and $6B in shares, that’s not going to buy the market in a hurry.
If you are in the business of selling stocks, you need to buy stocks to buy shares.
So when Yahoo Finance goes below the market price of $8, it’s not a huge deal because there’s enough stock out there to do so.
However, when Yahoo finance goes above the price of Yahoo’s stock, it makes Yahoo finance look like a major stockholder.
As the price goes up, the value of Yahoo finance decreases.
In fact, it may be even worse.
If Yahoo Finance becomes more valuable than Yahoo, Yahoo may not be able to buy enough of the stock to keep up with the price.
Here are the numbers.
$6 billion of Yahoo securities has been purchased by Yahoo Finance since April 20, 2016.
The stock was valued at $9.20 by the close of business on April 19, 2016 at the close to the close for Yahoo Future trading.
Since April 20th, Yahoo finance has increased its holdings by $4.4 Billion to $9 Billion.
At this price point, Yahoo is worth $9,500.
To put this in perspective, that same amount of money that was being invested in Yahoo has now been invested in a company called Yahoo Finance Holdings.
There are a lot more companies that are worth a lot less than Yahoo.
What if Yahoo Finance were to go down?
Well, that would be a terrible sign.
With Yahoo Finance’s share price going up, it means that Yahoo has to raise money to keep Yahoo Finance afloat.
A company that has $8B in assets could raise a lot to buy up all of Yahoo Futurys shares.
That is a lot for a company that is only worth a few billion dollars.
Should Yahoo Finance go down, it will send shockwaves through the market that will make Yahoo Finance look very expensive to own.
One way to think about this is to think of a company like ExxonMobil that is worth a billion dollars and has no assets.
You would think that if it could only get $1B in investment from investors, it would have a lot left over for dividends.
And that’s exactly what Yahoo Finance will be doing with Yahoo Finance Securities.
By raising money to buy all of the Yahoo Finance stocks, Yahoo will be able get to the point where it has enough money to purchase the Yahoo Futuring shares.
It will have enough money that it can sell them all, and it will have the money to make a dividend.
Is this the end of Yahoo?
Yeezy Finance may not get to $10 or $10.5 a share, but it’s probably going to be a long, long time before Yahoo Finance falls to $8 or $8 and beyond.
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