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Alibaba's Profits Rise 110% and Fuel Yahoo! Growth: StockTwits

Stocks in this article: YHOO

NEW YORK (TheStreet) -- Chinese Internet giant Alibaba's net income more than doubled last quarter, fueling a bottom line beat for Yahoo! (YHOO). And the results, announced by Yahoo! yesterday evening, is increasing fervor on for Alibaba's eventual listing on U.S. markets.

Alibaba numbers for calendar 2013: Revenue $7.95B (+62% YoY), net income: $3.52B (+295% YoY) $ALIBABA $YHOO $SFTBY -- Patrick Walther (@patrick_walther) Apr. 16 at 05:11 AM

$FB numbers for 2013 in comparison: Revenue $7.87B (+55% YoY), net income NON-GAAP: $2.2B (+69% YoY). What is Alibaba worth? $ALIBABA $YHOO -- Patrick Walther (@patrick_walther) Apr. 16 at 05:25 AM

Yahoo!'s earnings in equity interests, which are fueled by the Internet media company's 24% stake in Alibaba, increased 39% from the prior year to $301.4 million. Meanwhile, Yahoo!'s operating income, excluding some items, fell 33% to $149 million as it invests in new businesses.

Alibaba's net income increased 110% to $1.36 billion in the fourth quarter of 2013. Revenues grew 66% to $3.1 billion. (There's a one-quarter lag between when Yahoo! reports its data and Alibaba's financial figures). Yahoo!'s stock increased nearly 8% in premarket trading.

Yahoo! is struggling to become more than a shell for Alibaba's soon-to-be traded stock. Alibaba is in a quiet period and is expected to list this year with a valuation of more than $150 billion. Yahoo! is investing in creating online Web portals for popular content, similar to its leading finance site, but for food, news, sports, gaming and tech.

$YHOO so when alibaba ipo is a bust this is back to 14 right? -- Terry Spookeson (@spookytrades) Apr. 16 at 07:09 AM

The jury is still out on the success of Yahoo!'s new strategy. It reported first quarter earnings per share of 38 cents on $1.09 billion in sales, after taking out the amount the company pays to sites that host its advertisements, a.k.a "traffic acquisition costs," or TAC. EPS beat Wall Street consensus estimates by a penny. Sales came in $10 million higher than consensus expectations, according to the Analyst Ratings Network.

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