NEW YORK (TheStreet) -- Shares of Yahoo! Inc (YHOO) are getting a boost, up 1.21% to $46.90 this morning, after ecommerce giant Alibaba Group Holding Ltd. (BABA) reported better than expected revenue and in-line earnings in its fiscal second quarter this morning.
Yahoo! has a 384 million share stake in Alibaba, or about 15.3%, which has a current pre-tax value of $40.2 billion.
The Chinese online retailer Alibaba posted a fiscal second quarter revenue jump of 53.7% to $2.75 billion from one year ago, topping the $2.61 billion analysts' expected.
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Alibaba reported earnings of 45 cents per share for the quarter, in-line with the consensus estimate.
Watch the video below for a closer look at Alibaba's quarterly results:
Separately, TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."