Why the spike in Yahoo shares today? Was it that the CEO and CFO on Wednesday reported earnings newscast-style? The fact that it beat profit estimates (even though display-ad revenue fell for the third straight quarter)? Shares of the Sunnyvale company are at a five-year high, up more than 13 percent as of this post to $29.50, in high-volume trading.
CEO Marissa Mayer may have played the upbeat TV anchor yesterday, but as the Merc’s Brandon Bailey reported, she acknowledged that the company has “a lot of work to do.”
Mayer, who has been at the helm of the Sunnyvale company for a year, is benefiting from the company’s stake in Alibaba. The possibly-soon-to-go-public Chinese e-commerce giant’s business is going gangbusters — its first-quarter sales and profit soared — which helped boost Yahoo’s profit. Credit for Yahoo’s initial investment in Alibaba belongs to co-founder and former CEO Jerry Yang and is buying Mayer time, says a writer for the Wall Street Journal.
Photo of Yahoo CEO Marissa Mayer from Associated Press archives