Yahoo (YHOO) has ridden its big stake in Alibaba Group for years, but now it must show improvement in its core online ad sales, analysts say. Yahoo was up 2% in early afternoon trading in the stock market today, near 49, after the company cheered investors late Tuesday by announcing plans for a tax-free spinoff of its 15.4% stake in Alibaba (BABA). Still, revenue and earnings fell as the Web portal seeks to gain traction in online ad sales against
Web search firm Yahoo late Tuesday, bowing to shareholder pressure, announced a tax-free spinoff of its 15% stake in China e-commerce leader Alibaba Group, rallying its stock despite another quarterly decline in sales and earnings. In a conference call with analysts following the earnings release, Yahoo (YHOO) CEO Marissa Mayer called the spinoff of the Alibaba (BABA) shares a “historic” undertaking. But activist investor Starboard Value, and
When Yahoo (YHOO) reports Q4 earnings after the close on Tuesday, analysts want specifics on the company’s plans for the multibillion-dollar windfall it captured from the sale of its shares in China e-commerce leader Alibaba Group’s U.S. IPO last fall. And the stake Yahoo retains in Alibaba remains crucial. “Above all else, investors care about whether or not Yahoo will deliver on a tax-efficient structure to maximize the value to shareholders of