Updated from Tuesday, April 21Yahoo! ( YHOO) beat Wall Street's first-quarter profit target Tuesday, but said it will cut another 5% of its staff, or approximately 700 jobs. The Sunnyvale, Calif., Internet shop posted adjusted earnings, excluding one-time items, of 15 cents a share, down from 18 cents a share last year, but that was better than analysts' expectations for an 8-cent profit. When items were counted, Yahoo! had net income of $118 million, or 8 cents a share, below last year's $537 million and 37 cents a share. The 2008 quarter included a noncash gain of $401 million related to the initial public offering of Alibaba.com.
Yahoo! is the second Internet giant to beat expectations recently. Rival Google posted a strong first-quarter performance last week, and it seems Yahoo! may have enjoyed the same trends. Shares of Yahoo! rose 72 cents, or 5.3%, to $14.38 in regular trading and gained another 40 cents to $14.78 after the close.