Yahoo! (YHOO) has had a pretty volatile year. From conspicuous management ousters to torpedoed acquisition rumors, shareholders have certainly seen the ups and downs of their holdings over the last 12 months. But now, the focus is turning back on Yahoo!'s core business: a phenomenally popular collection of Web sites.
Yahoo! owns some of the most-visited sites on the internet, making it one of the few legacy tech bubble destinations that's held its spot on the rankings. Like other search providers, Yahoo!'s main business is advertising.But Yahoo! isn't a search company anymore -- today, it only provides the search portal; Microsoft (MSFT) maintains the algorithms that run Yahoo! Search. That's a good sign that YHOO has embraced its role as a destination over developing search technology. Ultimately, Yahoo! gets paid for having more eyes on its websites, not for reinventing the wheel with its search technology. At the same time, Yahoo! has made some prescient investments into attractive businesses. The most well known is the firm's 43% stake in Alibaba Group, a Chinese technology giant. Unloading Yahoo!'s share in Alibaba would shift a material chunk of YHOO's assets into cash and reduce risk -- it's a good move now that the company has seen its share of Alibaba balloon in value. With analyst sentiment on the upswing for Yahoo, we're betting on shares. Yahoo! shows up on a recent list of 5 Companies With New CEOs to Avoid.
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