Yahoo, Nvidia: After-Hours Trading

Updated with additional information on Tree.com, Nordstrom, Eastman Kodak, and the latest pricing quotes.

NEW YORK ( TheStreet) -- Shares of Yahoo ( YHOO) tanked in late trades on Thursday after the Internet search and content company made the stunning disclosure that it only learned at the end of March of the transfer in ownership of the Alipay third-party online payments business affiliated with Alibaba Group that occurred back in August 2010.

Yahoo, which has a roughly 40% stake in Alibaba, first disclosed the change in a regulatory filing late Tuesday, and its stock fell 7% on massive volume of 131 million during Wednesday's regular session.

The shares endured a relatively flat session on Thursday before issuing a statement on the news, saying it and Japan's Softbank, which reportedly owns a little more than 30% of Alibaba, learned on March 31 of "two transactions that occurred without the knowledge or approval of the Alibaba Group board of directors or shareholders," referrring to the transfer of ownership of Alipay to a company majority-owned by Alibaba CEO Jack Ma and then of the "deconsolidation of Alipay effective in the first quarter of 2011."

Yahoo said its disclosure of the change on Wednesday reflected it "obtaining a better understanding of this complex situation" and said it continues "continues to work closely with Alibaba and Softbank to protect economic value for all interested parties."

The stock was last quoted at $16.10, down 6.2%, on volume of 4 million, according to Nasdaq.com. The move marks a break below the shares' 200-day moving average of $16.71, and effectively erases the roughly 4.4% gain the stock had clocked in the past year.

While the exact value of Yahoo's stake in Alibaba is a matter of intense debate on Wall Street, few would argue it's not being counted as a major multi-billion positive for the company. David Einhorn of Greenlight Capital disclosed a fresh investment in Yahoo earlier this month, and reportedly called Alibaba the company's "most valuable asset" in a letter to the hedge fund's shareholders, adding that he "wouldn't be surprised" if the stake was "ultimately worth as much as Yahoo's entire current market value."

Yahoo's market capitalization is right around $22.7 billion, based on the recent share price.

In Wednesday's SEC filing, Yahoo said the ownership shift was done to "expedite obtaining an essential regulatory license" and said the terms of the transaction were still being discussed.

Nvidia

Shares of Nvidia ( NVDA) slipped in extended action after the graphics chip maker trounced Wall Street's expectations for its latest quarter but didn't back up that outperformance with a bullish enough outlook for the current period.

The Santa Clara, Calif.-based company reported a non-GAAP generally accepted accounting principles profit of $165.7 million, or 27 cents a share, for the three months ended May 1. Revenue totaled $962 million for the latest quarter.

The latest numbers trumped the average estimate of analysts polled by Thomson Reuters for a profit of 19 cents a share in the quarter on revenue of $948 million. However, for the second quarter ending in July, Nvidia said it sees sequential revenue growth of 4-6%, a slowdown from the 8.5% pace it set in the first quarter.

The stock was last quoted at $19.89, down 3%, on volume of 3.3 million.

Tree.com

Shares of Tree.com ( TREE) soared after the company agreed to sell its mortgage origination business to Discover Financial Services ( DFS) for $55.9 million.

"This move enables us to bring more focus to our core lead generation business at a time when demand for LendingTree leads is particularly strong," said Doug Lebda, the company's chairman and CEO, in a press release. "In addition to the purchase price, this transaction will unlock significant cash that can be used to invest in our other verticals as we continue towards revenue diversification."

The stock was last quoted at $7.25, up 34.3%, on volume of around 26,000, according to Nasdaq.com.

Tree.com, whose shares were down more than 30% in the past year prior to the move in the extended session, said it expects the transaction to close by the end of 2011.

Nordstrom

Nordstrom ( JWN) took a hit after the upscale retailer lowered its full-year outlook to reflect costs related to its acquisition of online "flash sale" company Hautelook.

Nordstrom brought its fiscal 2011 outlook down to a profit of between $2.80 and $2.95 a share because of costs related to Hautelook from a prior projection of $2.95 to $3.10 a share. The company also forecast a same-store sales increase of 2-4% for the year, a view that represents a decline from the 7.8% growth in comparable sales post in the first quarter.

The current average estimate of analysts polled by Thomson Reuters was for a profit of $3.13 a share for the fiscal year ending in January 2012.

Nordstrom said it expects Hautelook to produce revenue of between $160 million and $180 million for the year, and breakeven results. The company estimated the pre-tax expenses related to Hautelook will total $47 million, or 20 cents a share, for the year.

The stock was last quoted at $48.14, down 2.1%, on volume of around 875,000. Year-to-date, the shares have risen nearly 15% based on Thursday's regular-session close at $49.17.

Eastman Kodak

Shares of Eastman Kodak ( EK) jumped more than 7% to $3.05 on volume of less than 500,000 after the company reportedly got a favorable decision in its patent dispute with Apple ( AAPL).

The dispute involves two patents held by Eastman Kodak related to digital camera technology, and Bloomberg reported a spokesperson for Kodak as saying: "We're pleased by today's ruling and we are looking forward to the full ITC commission's ruling in our case against Apple and RIM, which is expected in late June."

Kodak is looking to exact royalties from both Apple and Research In Motion ( RIMM) related to the patents in question. Apple shares ticked lower in late trades, slipping 67 cents, or less than 1%, to $345.90.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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