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 StockTwits.com for Alibaba's eventual listing on U.S. markets.
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 AMThe 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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