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Yahoo! Inc. (YHOO)

  • Fri, Nov. 6, 1:38 PM
    • Alibaba is down 3.9% after fund manager Jim Chanos recommended shorting the stock (perceived accounting issues were brought up), and going long as a hedge.
    • Yahoo (NASDAQ:YHOO), which has followed Alibaba higher in recent weeks (aided by Alibaba's FQ2 beat), is naturally lower in response. The company's 384M-share Alibaba stake has a pre-tax value of $31.5B.
    | Fri, Nov. 6, 1:38 PM | 13 Comments
  • Tue, Oct. 27, 9:22 AM
    • Yahoo (NASDAQ:YHOO) has risen to $35.20 premarket after Alibaba (BABA - up 8%) beat FQ2 estimates with the help of a 12 bps Y/Y increase in Chinese marketplace monetization/take rate (contrasts with FQ1's 19 bps decline) to 2.42%.
    • The trigger: Mobile monetization rate (up 52 bps Y/Y to 2.39%) is now nearly even with Alibaba's total monetziation rate, helping mobile grow to 61% of marketplace revenue from 51% in FQ1 and just 29% a year ago. Mobile monthly active users rose 13% Q/Q and 59% Y/Y to 346M, and total annual active buyers 5% Q/Q and 26% Y/Y to 386M.
    • Alibaba's China marketplace GMV growth slowed to 28% Y/Y from FQ1's 34% and FQ4's 40%. Total China commerce revenue rose 35% to $2.88B, international commerce rose 14% to $289M, and cloud computing/Internet infrastructure rose 128% to $102M. EBITDA margin was flat at 50%, and free cash flow rose 52% to $2.14B (above net income of $1.46B).
    • Not counting any potential tax payments, Yahoo's 384M-share Alibaba stake is now worth $31.6B.
    | Tue, Oct. 27, 9:22 AM | 18 Comments
  • Tue, Oct. 27, 9:17 AM
    | Tue, Oct. 27, 9:17 AM | Comment!
  • Thu, Oct. 15, 12:26 PM
    • Looking to halt ongoing share losses to Gmail (or at least slow them), Yahoo (NASDAQ:YHOO) has overhauled its iOS/Android Mail apps. New features include a smarter search engine that makes suggestions based on queries and message content, the ability to fully manage Hotmail,, and e-mail accounts, and social media content integration for contact profiles.
    • Getting the most attention is Yahoo Account Key, a feature that lets users login without a password by linking their Yahoo account to a mobile device, and approving/denying logins via push notifications sent to the device. Yahoo argues Account Key is more secure than passwords, and eliminates the possibility of a user being unable to logic due to forgetting his/her password.
    • comScore estimates Yahoo Mail had 71M U.S. users as of August, down from 96M two years earlier. Over the same time, Gmail's (GOOG, GOOGL) U.S. base, strengthened by the pre-installing of a Gmail app on devices using Google's version of Android, is believed to have grown to 135M from 96M.
    • Yahoo is up strongly thanks to Alibaba, which is up 3.9%. Q3 results are due on Oct. 20.
    | Thu, Oct. 15, 12:26 PM | 2 Comments
  • Fri, Oct. 2, 12:13 PM
    • Hammered over the last several months as macro concerns and plunging local markets took a toll, U.S.-traded Chinese tech stocks are up strongly (CQQQ +3.2%) today even as the Nasdaq and S&P post modest declines.
    • Web/mobile stocks posting big gains include giants Alibaba (BABA +5.3%) and Baidu (BIDU +4.5%), with the former naturally taking Yahoo (YHOO +4%) higher with it. Yahoo rose earlier this week after stating it's still pushing ahead with a spinoff of its 384M-share Alibaba stake.
    • Other gainers include Vipshop (VIPS +6.6%), SouFun (SFUN +6.2%), Qihoo (QIHU +6.7%), Youku (YOKU +5.8%), Jumei (JMEI +8%), Bitauto (BITA +5.3%), Weibo (WB +5.9%), Jumei (JMEI +8%), and Cheetah Mobile (CMCM +6.6%). Online travel leaders Ctrip and Qunar are also up big, possibly aided by new efforts from Beijing to boost Macau tourism.
    • Solar winners include Yingli (YGE +4.1%), ReneSola (SOL +5.6%), and Daqo (DQ +9.4%).
    | Fri, Oct. 2, 12:13 PM | 29 Comments
  • Mon, Sep. 28, 5:43 PM
    | Mon, Sep. 28, 5:43 PM | Comment!
  • Mon, Sep. 28, 5:37 PM
    • Yahoo (NASDAQ:YHOO) discloses its board recently authorized the company to continue pursuing the spinoff of its 384M-share Alibaba stake, in spite of the IRS' recent decision not to grant a private letter ruling stating the spinoff satisfies its active trade or business (ATB) requirement. It still aims to finish the transaction in Q4.
    • Yahoo cautions the spinoff is still "subject to certain other conditions, including final approval by Yahoo's Board of Directors, receipt of a legal opinion with respect to the tax-free treatment of the transaction under U.S. federal tax laws and regulations, the effectiveness of an applicable registration statement filed with [the SEC] and compliance with the requirements under the Investment Company Act of 1940, and other customary conditions." The company notes an IRS official recently stated new guidance planned for tax-free spinoffs won't apply to transactions that occur before the guidance is issued.
    • Shares are up 3.1% after hours to $28.45, after falling 5.3% in regular trading amid a market rout.
    | Mon, Sep. 28, 5:37 PM | 29 Comments
  • Mon, Sep. 14, 2:54 PM
    • Alibaba (BABA -3.3%) has sold off after Barron's published a lengthy bearish piece questioning the Chinese e-commerce giant's valuation, growth outlook, corporate governance, non-core investments, and user metrics. Yahoo (YHOO -2.9%), whose 384M-share Alibaba stake is now worth $24B, is along for the ride.
    • Alibaba SVP Jim Wilkinson published a lengthy rebuttal to Barron's' column, Among other things, he questioned the logic of comparing Alibaba's valuation to eBay's, noted Alibaba derives the lion's share of its revenue from wholly-owned subsidiaries rather than oft-criticized variable-interest entities (VIEs), and took issue with the numbers cited for average U.S. e-commerce spending and Alibaba's average annual user spend.
    • SunTrust's Bob Peck is also defending Alibaba. He estimates Alibaba's average customer spent $1,150 on its site last year, less than the $1,600 spent by the average U.S. shopper. Barron's, suggesting Alibaba's numbers were questionable, indicated the average Alibaba shopper spent 26% more than the average U.S. online shopper.
    • Peck also argues Jack Ma's 2011 decision (criticized by Barron's) to transfer ownership of Alipay to a private partnership controlled by Ma was necessary due to Chinese banking regulations. Alibaba is currently entitled to 37.5% of Alipay parent Ant Financial's pre-IPO profits, and a 37.5% equity stake at IPO time.
    | Mon, Sep. 14, 2:54 PM | 32 Comments
  • Tue, Sep. 8, 4:55 PM
    • The IRS has notified Yahoo's (NASDAQ:YHOO) lawyers it isn't granting the company's request for a ruling declaring the company's planned 384M-share tax-free Alibaba (NYSE:BABA) stake spinoff meets its active trade or business (ATB) requirement. Yahoo has withdrawn its request for a ruling.
    • Yahoo: "At the same time, the IRS indicated that it had not concluded that the proposed spin-off transaction was taxable and therefore was not ruling adversely on the request ... Work proceeds on the pending Aabaco spin-off plan. Yahoo’s Board of Directors will continue to carefully consider the Company’s options, including proceeding with the spin-off transaction on the basis of an opinion of counsel."
    • Yahoo has fallen to $29.53 after hours. Alibaba is up 0.4% to $61.15, after falling 4.7% in regular trading in the wake of cautious remarks on calendar Q3 GMV growth. Yahoo fell in May after an IRS official's remarks about active business requirements for a spinoff stoked fears of an unfavorable ruling. The company has said it would attach its small business service unit to the spinoff in order to meet ATB requirements.
    | Tue, Sep. 8, 4:55 PM | 92 Comments
  • Tue, Sep. 8, 1:09 PM
    • During a Citi conference talk (webcast), Alibaba (BABA -1.8%) IR chief Jane Penner provided cautious remarks about FQ2 (calendar Q3) GMV growth, and noted expectations have recently been lowered.
    • Up as much as 4.5% this morning as markets rallied, Alibaba has turned negative over the last hour. Yahoo (YHOO - unchanged) is nearly flat after previously rising as much as 3.5%.
    • Alibaba's Chinese marketplace GMV rose 34% Y/Y in FQ1 (36% excluding a Chinese online lottery suspension), a slowdown from FQ4's 40% and FQ3's 49%. Concerns about the impact of slowing Chinese GDP growth have been running high.
    • Citi is defending Alibaba, arguing Penner's remarks have been taken out of context and that she qualified them by adding expectations haven't changed in a dramatic way.
    • YTD, Alibaba is down 40%. Shares now trade for 18x an FY17 (ends March '17) EPS consensus of $3.40. FY16 and FY17 revenue growth consensus estimates are respectively at 26.1% and 31.1%.
    • Update (4:04PM ET): Alibaba has closed down 4.7%, and Yahoo down 2.2%. Reuters has provided more details on Penner's remarks. Alibaba now expects FQ2 GMV to be lower by a mid-single digit % relative to prior forecasts, and sees growth for the international AliExpress marketplace to slow to a low-double digit clip due to Russian and Brazilian forex pressures.
    | Tue, Sep. 8, 1:09 PM | 32 Comments
  • Mon, Aug. 24, 8:03 AM
    | Mon, Aug. 24, 8:03 AM | 45 Comments
  • Wed, Aug. 12, 9:24 AM
    • Alibaba (BABA - down 5.8%) beat FQ1 EPS estimates and announced a $4B buyback, but missed revenue estimates and reported Chinese retail marketplace GMV growth slowed to 34% Y/Y (36% excluding an online lottery suspension) from FQ4's 40% and FQ3's 49%. In addition, the company's monetization/take rate for Chinese marketplaces fell 19 bps Y/Y to 2.33%, thanks to a mix shift towards mobile (2.16% take rate, up 67 bps Y/Y).
    • Yahoo (NASDAQ:YHOO) has slumped to $34.16 premarket. Alibaba and Yahoo also both sold off yesterday amid a market correction that followed the yuan's devaluation.
    • Yahoo's 384M-share Alibaba stake is currently worth $27.9B; the company will officially be free to sell Alibaba shares on Sep. 19. Yahoo continues to push ahead with its plans to spin off the Alibaba stake into a separate, publicly-traded, company in Q4 (pending IRS approval).
    | Wed, Aug. 12, 9:24 AM | 7 Comments
  • Wed, Aug. 12, 9:13 AM
    | Wed, Aug. 12, 9:13 AM | Comment!
  • Wed, Jul. 8, 10:47 PM
    • Yahoo (YHOO -2.6%) is jumping into the daily fantasy sports arena, a potentially lucrative field that is getting more crowded as big media firms pick out partners.
    • The company launched its site to host daily and weekly games where fans assemble rosters and earn points based on game performance in those short-term competitions.
    • An estimated 57M participants in the U.S. and Canada average spending $465 a year on fees and materials related to the short-term fantasy games, Ipsos says. That adds up to about $2.6B in entry fees, and potentially hundreds of millions in revenue for Yahoo.
    • The space is dominated now by FanDuel and DraftKings -- the former of which has major investments from Comcast as well as KKR and Shamrock Ventures, and the latter with its own millions in venture funding and a relationship with ESPN. Both companies have been valued at $1B.
    • Yahoo's not starting from scratch, though: Daily games are dependent on quick and voluminous data, which the company has been offering sports fans for years.
    • Press release
    • Previously: Blistering pace of growth at FanDuel (Jan. 13 2015)
    | Wed, Jul. 8, 10:47 PM | 10 Comments
  • Tue, Jul. 7, 11:08 AM
    • Though not seeing the 10%+ declines witnessed by many U.S.-traded Chinese tech peers, Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) are down sharply following fresh overnight losses for the Shanghai and Shenzhen exchanges.
    • Yahoo (NASDAQ:YHOO), whose 384M-share Alibaba stake is currently worth $29.4B, is once more following in Alibaba's footsteps. The Nasdaq is down 1.5%.
    • Alibaba has made fresh post-IPO lows. Baidu is less than $7 away from a 52-week low of $176.69. Alibaba now trades for 21x an FY17 (ends March '17) EPS consensus of $3.72. Baidu trades for 20x a 2016 EPS consensus of $9.29.
    | Tue, Jul. 7, 11:08 AM | 7 Comments
  • Thu, Jun. 11, 2:53 PM
    • After talking with tax lawyers and lobbyists, policy analysis/research firm Capstone thinks recent comments from an IRS official about potentially changing tax-free spinoff rules were "carefully choreographed" by the IRS and Treasury, and "designed to send a message to Yahoo (NASDAQ:YHOO) concerning the Alibaba spinoff, though neither company was mentioned by name."
    • Capstone thinks an adverse ruling would have an $11B impact on Yahoo, whose 384M-share Alibaba stake is currently worth $33.7B. It also notes (citing a law firm) the aggregate value of all spinoffs occurring in 2012 and 2013 was respectively just $41B and $33B.
    • Yahoo tumbled on May 19 after an IRS official stated the agency is reviewing rules on "spinoffs of trades or businesses that are small compared with a company’s other assets," but recovered a chunk of its losses after responding to the comments.
    | Thu, Jun. 11, 2:53 PM | 33 Comments
Company Description
Yahoo! Inc is a technology company. It offers search, content and communication on mobile phone, tablet or desktop.