Yahoo is moving away from the internet

Yahoo is moving away from the internet

The Heart of Rock

Alibaba has just finished its 10 birthday, Yahoo, one of the biggest shareholders, sold 57.48 million shares on September 14, a 150 million-dollar cash. But Yahoo accounts for only 1% of Alibaba's listed companies, so selling shares has little impact on Ariababa.

However, from the current situation of Alibaba Group and the future development prospects, Yahoo has no need to rush to sell stocks. Alibaba's total number of paid members crossed the 500,000 mark to 531,471, up 44% from last year, surpassing the number of paid members in the past six months, according to Alibaba, which has benefited from the continued growth of buyers and sellers in the online trading market in the first half of 2009. Alibaba's shares have risen 279% per cent this year, while Hong Kong's Hang Seng index has only risen 45%.

And Alibaba's Alipay customers have broken 100 million, Taobao more than ebay to become the world's largest Consumer-to-consumer mall, Ali Software, Ali cloud computing companies are also developing rapidly. In addition, China's 450 million internet users of the huge market, as well as tens of thousands of small and medium-sized enterprises, are indicative of Alibaba has a bright future.

Yahoo sold Alibaba shares at this time, is considered "short-sighted" speculative behavior. As for the reasons for selling Ali stock, I think there are probably the following:

One, this year, Alibaba's share price has risen 279%, reached more than 21 Hong Kong dollars. Yahoo subscription price of HK $13.5, the placement of Yahoo will receive a 47% return. In a situation where the economy is still not fully recovered, the rate of return for 47% is already very high.

Second, Yahoo CEO Bartz need to prove their strength to Yahoo shareholders. Yahoo said it would reinvent its technology platform, promote marketing and reshape its brand, adding $75 million trillion in the third quarter. As a result of these expenditures, Yahoo is expected to total revenue in the third quarter of 1.45 billion ~15.50 billion, the chain decline 1.5%~7.8%, lower than analysts previously estimated 1.56 billion U.S. dollars. To make the third-quarter earnings look better, Bartz had to decide to sell Alibaba shares in order to give Yahoo shareholders an account.

Third, Yahoo is becoming an investment company rather than an internet company. After the sale of Yahoo Search agreement with Microsoft, Yahoo has become an empty shell. After all, search is its rich business, but also its main source of revenue. Give up the search, it means the death of Yahoo. From an internet company to an investment firm, the sale of shares is perfectly normal.

Yahoo's decline:

Yahoo's Q2 earnings show that Yahoo's search advertising revenue has fallen by 15% per cent from a year earlier, far exceeding Google's second-quarter search advertising revenue, which is only 3%. In the search advertising market, Google has been eating Yahoo's market share, now its market share has reached 65%.