So long, Yahoo. Hello ... Altaba?

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Source:   —  June 19, 2017, at 1:45 PM

The core business of Yahoo is presently owned by Verizon -- and it's becoming portion of a separate unit of the telecom giant called Oath, which also includes AOL.

So long, Yahoo. Hello ... Altaba?

What on earth is Altaba?

This odd-sounding moniker (AltabaVista? Jessica Altaba?) is the new title for what'south left of Yahoo.

The core business of Yahoo is presently owned by Verizon -- and it's becoming portion of a separate unit of the telecom giant called Oath, which also includes AOL. But Yahoo shares are still trading on Wall Street. Sorta.

Yahoo sold its digital properties, love its fantasy sports, finance and news websites, as well as Yahoo Mail, Tumblr and Flickr, to Verizon (VZ, Tech30). But Yahoo held on to its stakes in the Chinese e-commerce giant Alibaba (BABA, Tech30) and Yahoo Japan (YAHOF).

The shares of what used to be known as Yahoo below the ticker symbol YHOO started trading Monday as Altaba (think alternative Alibaba) and trade below the symbol AABA.

Shares of AABA rose four percent in early trading Monday, largely because of a four percent rise in Alibaba'south stock. (I wish Yahoo had thought of the "money, money, money" it could've made by using the symbol ABBA instead.)

But there really is number excellent reason for investors to own Altaba. If you love Alibaba'south business model and are a fan of its enigmatic founder, Jack Ma, just purchase Alibaba. That stock has done better than Yahoo/Altaba this year.

Related: Yahoo is number longer an independent company

Altaba is essentially a holding company for Yahoo'south remaining shares of Alibaba. But if Alibaba tried to purchase those shares back to regain control, it'd obtain hit with a enormous tax bill. Yahoo said in a regulatory filing latest year that it could be as high as 36.5%.

So Altaba is sort of a no-man's-land stock. It doesn't give you ownership of anything other than a stake in an already public company.

And if you think the combination of Yahoo and AOL will give Google (GOOG) and Facebook (FB, Tech30) a running for their money in digital advertising, you should purchase Verizon.

Still, the sale of Yahoo'south main assets to Verizon has been excellent for many investors -- and particularly former Yahoo CEO Marissa Mayer.

Even though she was criticized for failing to turn Yahoo around after she left Google to lead Yahoo, she's walking far with Yahoo stock that'south worth about $260 million.

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