Red Hat “specializes in open-source software and services. Intuit, the $24 billion maker of TurboTax, has been diversifying into software for tablets and smartphones,” according to Bloomberg. Shares of Red Hat accounted for 3.63% of SKYY as of Sept. 9, making the stock the ETF’s fifth-largest holding, according to First Trust data.
The Bloomberg piece mentions several SKYY holdings as candidates for an Alibaba takeover, including Rackspace Holding (NYSE: RAX), Akamai Technologies (NasdaqGS: AKAM) and Intuit (NasdaqGS: INTU). Those stocks combine for 7.3% of SKYY’s weight. The largest of the three by market value is Intuit at just over $24 billion, but any of the three could easily be digested by Alibaba given the Chinese company’s estimated valuation in the area of $160 billion. [What Alibaba’s Valuation Means for ETFs]
Although it is not likely in the near-term, Alibaba could eventually make a play on Yahoo (NasdaqGS: YHOO), Bloomberg reports. Yahoo owns 23% of Alibaba and is expected to trim that stake by about 20% in the IPO. Yahoo is not a member of SKYY’s lineup, but it is nearly 5% of the First Trust Dow Jones Internet Index Fund (NYSEArca: FDN).
First Trust ISE Cloud Computing Index Fund
