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Hedge Funds Slims Stake In Yahoo! Inc. (NASDAQ:YHOO), Zynga Inc (NASDAQ:ZNGA)

Boston, MA 08/15/2014 (wallstreetpr) – Yahoo! Inc. (NASDAQ:YHOO) and Zynga Inc (NASDAQ:ZNGA) are not an apple-to-apple comparison, but one can still pick up several similarities between the two companies. One of the similarities is that they are both struggling to keep revenue growing so that investors can love them. But so far this year all has been not been well with them. Yahoo is down more than 10% while Zynga is off 25%. The latest addition to the similarities of the struggling tech companies is that Point72 Asset Management, a hedge-fund founded by billionaire Steven A. Cohen, no longer loves them as much.

Yahoo, Zunga bear the brunt

In the latest filing, it has emerged that the hedge fund reduce stake in various stocks it holds and the stocks that bore the brunt in the tech category included Yahoo! Inc. (NASDAQ:YHOO), Zynga and Sirius XM Holdings Inc. (NASDAQ:SIRI) while BlackBerry Ltd (NASDAQ:BBRY) was discarded by the hedge fund, as the Wall Street Journal stated in an article.

The hedge fund sold 11.69 million shares in Yahoo! Inc. (NASDAQ:YHOO), 32.89 million in Zynga and 35.83 million in Sirius.

Yahoo! Inc. (NASDAQ:YHOO) has had several troubles, and it is trying to boost its performance both originally and through strategic acquisitions. In fact, the company’s CEO, Merissa Mayer, has spent most of her time in the company since she joined from Google Inc (NASDAQ:GOOGL) making acquisitions.

While the acquisitions bring a sense of hope that Yahoo may soon return to its former glory where revenue and profit growth was commonplace, there are also a number of issues raised about the acquisitions. For example, some investors feel that there has been little or even nothing to show for the widespread acquisitions at Yahoo.

Content enrichment and Alibaba IPO

The company is not just acquiring products and technology but talents as well. It has hired several prominent journalists in efforts to enrich its content to attract better advertisement revenue.

In the recent times, there have been hopes that Yahoo! Inc. (NASDAQ:YHOO) stands to benefit a great deal from its 24% stake in Chinese e-commerce giant Alibaba, whose IPO is expected mid-September. Yahoo is expected to sell a significant stake of its holding in Alibaba during the IPO. That move is expected to further boost its cash position for more acquisitions or even return to shareholders.

Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email ([email protected]) or his Google+ page (https://plus.google.com/103338576216002376250).

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