So Google and Yahoo are set to report earnings next week. While Google is obviously a rocket and latest price targets are reaching well over 700$ Yahoo has been falling and lost a little of the search market ground. So how does this relate to Alibaba you ask? Since Yahoo is committed to buy 1B$ of Alibaba's IPO I think Yahoo should be in a better, more positive, position to commit that much money. They also have a 40% stake in the Alibaba Group.
Where is the good news in all this? Recently Yahoo has begun to make some acquisitions to position itself to perform better in the future. Two recent acquisitions focus on what makes Google such a powerhouse, on-line advertising. Analysts estimate these acquisitions should contribute between 400 and 600M$ in revenue over the next 12-18 months. Positive news for a company that seems to be losing ground in the search engine market.
This along with the IPO commitment set Yahoo up to bring some shareholder happiness in the future. Maybe a long future in Yahoo but a future at least.
When is the Alibaba IPO supposed to launch?
ReplyDeleteMid-November. It must be purchased through the HK exchange. Usually a 5k minimum is required.
ReplyDelete