Dallas, Texas 05/02/2014 (FINANCIALSTRENDS) – Yahoo! Inc.(NASDAQ:YHOO) the erstwhile search-engine and once the website which defined the meaning of internet and information use, has definitely been on the decline over the past half-decade.
To arrest that decline it has attempted many course corrections, which include products as well as acquisitions and sale besides appointment of new CEOs at the helm to gain momentum in turnaround.
The appointment of Marissa Meyers as the CEO has not been as successful as expected, nor has been many of the acquisitions, which include stakes in Alibaba, the Chinese ecommerce giant. The company currently holds stake to the tune of 24% in Alibaba.
Alibaba IPO is expected to be released by August of 2014 and most suggest that this ecommerce giant too would take much the same course as did Facebook Inc. IPO. Back in 2012 May when Facebook IPO raised to unexplainable prices of $38 per share, to eventually fall to nearly half the price at $18 in a span of two months, definitely leaves lessons for investors and analysts alike.
Yahoo! Inc.(NASDAQ:YHOO)’s Alibaba IPO too appears to be taking much the same route, with IPO value reaching anywhere between $100 billion to even an unheard of $300 billion.
However, if one were to glance at the financial position provided for Alibaba in Yahoo’s fourth quarterly results, the most significant numbers were the increase in revenue was by 66%, over the previous year’s revenue earnings.
Currently Alibaba is a privately held company and therefore not all details are available. Additionally, it will be only at the time of the IPO that more information will be available, as regards Alibaba’s potential on the stock market.
However the outcome of the IPO, the bottom line is that Yahoo! Inc.(NASDAQ:YHOO)will have a positive run, riding piggy back on the ecommerce giants fortunes!