Yahoo shares rose 10.34% in regular trading on the Nasdaq stock Exchange in Wednesday

Yahoo's shares surged 10.34% per cent in conventional trading on the Nasdaq stock Exchange in Wednesday, at $29.66, a record high since May 2008, according to foreign media reports.

Yahoo said in Tuesday that Alibaba Group's net profit in the first quarter grew twice times Year-on-year, to $669 million trillion; first-quarter revenues surged 71% per cent to $1.38 billion trillion. Yahoo still holds about 24% per cent of Alibaba Group after selling nearly half of Alibaba's holdings last year.

The strong performance of Alibaba Group has supported Yahoo's share price favorably. A year after Marissa (Marissa Mayer) became Yahoo's chief executive, the company is still in its early stages of transformation. By focusing on launching new products, Yahoo aims to attract advertisers and consumers from Google and Facebook. Mark Mahaney, Mahaney Capital market analyst at Royal Bank of Canada, believes that the vast majority of Yahoo's share price over the past year has been driven by a rise in the shares of Alibaba Group and Yahoo Japan.

Riley &co analyst Samit Sinha (Sameet Sinha) said, "Alibaba Group is showing a lot of operating leverage." The company has built a huge market in China and is starting to charge users. "Yahoo's second-quarter earnings, released in Tuesday, showed a 12% per cent drop in advertising revenue, which ruled out a 1.071 billion-dollar revenue for the second quarter, down 1% per cent year-on-year, and a net profit of 331 million dollars and a 46% increase year-on-year. Yahoo won 225 million U.S. dollars in the second quarter through its Alibaba Group and Yahoo Japanese stake, up from $180 million a year earlier.

Soaring performance

Yahoo reported in Tuesday on the company's official website, Alibaba Group net profit rose twice times in the first quarter, from the same period last year, 220 million U.S. dollars rose to 669 million U.S. dollars. The company in Hangzhou is likely to make its initial public offering by the end of this year.

Yahoo's holdings of Asian assets have also given Yahoo a chance to hedge against the devaluation of the yen. Yahoo said it had received 243 million dollars in cash in the second quarter because of its hedging business. Yahoo had said in May this year that it had received a pre-tax income of $270 million trillion in the first quarter because of hedging its stake in Yahoo Japan, and that it had earned 3 million dollars in pre-tax revenue last year.

Yahoo said in Tuesday that excluding the cost of traffic, the company's third-quarter revenue will be 1.06 billion U.S. dollars to 1.1 billion U.S. dollars. Market analysts expect Yahoo's third-quarter revenue to be $1.12 billion, according to Bloomberg statistics.

CEO effort

Paul Sweeney, Bloomberg Industrial analyst Paul Svigny, said that while Ms. Mayer was trying to increase the number of Yahoo users, investors had to be patient and look forward to the growth of Yahoo's advertising revenues. Sweeney said, "Mayer's investment in products to enhance user participation, and ultimately achieve the growth of corporate revenue is a long-term cause." Judging by Yahoo's current performance expectations, Ms. Mayer's investment in the short term is hard to bring to the company's performance. ”

Market research firm emarketer estimates that the display ad market reached $17.5 billion trillion last year, with Yahoo's share falling from 9.2% last year to 7.9% this year. Google's share will grow by 3%, reaching a near-18%;facebook share that is expected to grow 2% to 17%.

Yahoo's earnings showed the company's second-quarter revenues fell 12% from a year earlier to $472 million. "In fact, Yahoo shows that the plight of the advertising business is just beginning," said Colin Gillis, an analyst at Colin Gillis, a US investment firm. We're not seeing what Yahoo's management can do to stop their decline. ”

Chain

Mayer likened her revival plan to a "ripple effect", saying it would eventually allow the company to achieve revenue growth. "Hiring and retaining a great team, they will develop inspiring products to attract users and increase traffic," Ms. Mayer said in a Tuesday webcast analyst conference call. "The increase in traffic can spark interest and eventually turn into revenue." First people, then products, and then flow, and finally revenue. ”

Yahoo Tuesday also cut the company's 2013 revenue forecasts. Excluding the cost of traffic, Yahoo expects its revenues to be at $4.55 billion trillion this fiscal year, below the company's estimated $4.6 billion trillion in April this year, just above $4.47 billion trillion last year. "Yahoo will experience a year with no revenue growth," said analyst Sinha. ”

Crazy takeover

Ms. Mayer began a frantic takeover after taking office, boosted by the sale of shares in Alibaba Group. During her tenure as Yahoo's chief executive, Yahoo has bought at least 18 companies, including 1.1 billion dollars to buy light blog Tumblr, and the acquisition of mobile app developers stamped, Jybe and Summly. Earlier this month, Yahoo spent about 70 million dollars to buy the Address Book application and plug-in company Xobni.

Yahoo announced in Wednesday that it had acquired Admovate, an innovative company that offered technology to buy and sell mobile advertising. Admovate's four technicians will join Yahoo to help the company earn revenue from ads displayed on smartphones and tablets.

Yahoo spent 653 million dollars in the second quarter to buy back 25.3 million shares of the company, the average repurchase price of 2.576 billion U.S. dollars.

Yahoo's share price is close to $31 trillion, the price it bought in 2008 when Microsoft made its first takeover offer to the company. Although Microsoft later raised the price per share to 33 U.S. dollars, Yahoo still rejected a takeover offer from Microsoft. Affected by the decline in the number of tradable shares, Yahoo's current market value of 31.8 billion U.S. dollars, still far from Microsoft's proposed 47.5 billion U.S. dollar acquisition price.