Latest Yahoo news came around when Alibaba, a Chinese e-commerce giant is
going Public. Alibaba has an estimated market value of $153 billion in which
24% stake is taken by Yahoo which makes it $36.4 billion. Alibaba is expected
to raise $15 billion through the IPO, which is good news for Yahoo and the
investors. Yahoo’s main problem is that
it doesn’t have one core business and theme. It has a set of unconnected
services, all belonging to the company. In the recent times, it has find it
difficult to convert user interest into revenues.
Since the new CEO Marissa Mayer has
joined the office i.e. From July 2012, Yahoo’s shares have shown an upward trend, moving from just under
$16 to about $38 today. On the contrary, Yahoo revenues have not shown growth since Marissa
Mayer took over. Revenues have been declining recently as well. Yahoo’s Earnings per Share is $1.27 as
of today.
Yahoo’s share price is currently
trading at $37.77 down 2.18% from yesterday’s close of $38.61.
Yahoo’s stock price has depreciated
6.6% since January 01, 2014 and appreciated 65% since 21st March
last year.
With
the IPO of Alibaba around the corner, Yahoo’s
stocks should be held as for right now.
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