This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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

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

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
YHOO $44.52 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs