Mon, Aug. 24, 8:03 AM
- Tech stocks in the U.S. are sharply lower in early action after the sector fell just as hard as broad market averages in China and Japan. Tech heavyweights aren't getting spared amid the carnage.
- Google (NASDAQ:GOOG) -4.1% premarket to $587.31.
- Apple (NASDAQ:AAPL) -5.1% to $100.38.
- Microsoft (NASDAQ:MSFT) -3.9% to $41.41.
- Facebook (NASDAQ:FB) -3.4% to $83.05.
- Yahoo (NASDAQ:YHOO) -6.6% to $30.75 and Alibaba (NYSE:BABA) is down 8.7% to $62.26 as concerns over growth in China mount.
- The Nasdaq 100 futures contract is off 4.8%.
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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, 9:13 AM
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)
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.
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, May 28, 11:21 PM
- Yahoo Japan (OTCPK:YAHOY) is up 8.6% in Tokyo, the biggest single-day jump in two months, as it says it's looking to team with Alibaba Group (NYSE:BABA) to enter China's e-commerce market.
- The company -- Japan's third-largest e-tailer -- will help guide Japanese companies to sell products, especially household goods, on Alibaba's Tmall and Tmall Global sites.
- Japanese goods' increasing popularity in China is providing expansion opportunities, Yahoo Japan (a JV between Softbank (OTCPK:SFTBY) and Yahoo (NASDAQ:YHOO)) noted in a statement.
- Softbank is up 1.7% in Tokyo.
Wed, May 20, 9:21 AM
- A Yahoo (NASDAQ:YHOO) statement made via Tumblr: "Yahoo understands that the IRS’s statement is not specific to Yahoo’s planned Q4 2015 spin-off of its remaining stake in Alibaba Group (NYSE:BABA) and Yahoo Small Business, reflects no change in applicable law, and does not affect previously filed ruling requests. Yahoo filed its pending ruling request with the IRS in Q1 2015. Yahoo continues to work toward completing the planned spin-off in Q4 2015."
- Shares fell 7.6% just before the close yesterday after it was learned IRS senior technician reviewer Isaac Zimbalist had stated the IRS is reviewing rules on "spinoffs of trades or businesses that are small compared with a company’s other assets," and would hold in abeyance new spinoff ruling requests. He added existing applications would still be reviewed, while noting this was subject to change.
- Zimbalist: "The issue comes down to whether we’ve dropped a hot-dog stand or a lemonade stand into a business that is primarily publicly traded stocks, cash and other wonderful things that I call appreciated property." Yahoo has included its Small Business services unit with the Alibaba spinoff in an attempt to meet the IRS' Active Business requirement. BGC's Colin Gillis notes the IRS' review could also have implications for a potential Yahoo Japan spinoff.
- Yahoo has rebounded to $42.11 in premarket trading. Alibaba is nearly unchanged.
Tue, May 19, 4:28 PM
- Bloomberg reports the IRS is considering rule changes about "spinoffs of trades or businesses that are small compared with a company’s other assets." An IRS official states the agency will hold in abeyance new spinoff ruling requests while the issue is studied. Existing requests will continue to be reviewed, but that's subject to change.
- The report has sparked fears the IRS won't sign off on Yahoo's (NASDAQ:YHOO) plans to do a tax-free spinoff of its 384M-share Alibaba (NYSE:BABA) stake later this year.
- Yahoo closed down 7.6%. Alibaba rose 1.3% on hopes 384M more shares won't become available for sale.
- Earlier: Yahoo takes late-day tumble
Tue, May 19, 3:46 PM
Tue, May 12, 10:34 AM
- Though the Nasdaq is down 0.9%, Yahoo (YHOO +1%) is higher following news Verizon is acquiring AOL (i.e. the company Starboard Value dreamed about merging with Yahoo) for $4.4B. Demand-side/programmatic ad tech platform owner Rocket Fuel (FUEL +3.4%), which competes with AOL's ad tech ops, is also up.
- Citi's Mark May: "We view this deal as a positive for YHOO as it shows there are strategic buyers for this type of asset and because we view YHOO as a strong asset that is currently only valued at 1x our 2016 EBITDA estimate." With Yahoo spinning off its Alibaba stake later this year and exploring options for its Yahoo Japan stake, core Yahoo might soon be available by itself.
- Last week, Rocket Fuel received an unsolicited $350M buyout offer from rival Gravity4 (and jumped in response). However, questions remains about Gravity4's ability to finance the bid, which has been viewed by many as a publicity stunt.
Thu, May 7, 9:30 AM
- Alibaba (NYSE:BABA) has jumped to $89.05 after posting an FQ4 beat amid low expectations. Along with the results, the company has announced COO Daniel Zhang is its new CEO, effective May 10; current CEO Jonathan Lu will stay on board as vice chairman, joining Joseph Tsai in holding that title. Jack Ma remains executive chairman.
- Revenue growth accelerated to 45% Y/Y from FQ3's 40%. Chinese marketplaces GMV rose 40% to RMB600B ($96.6B), a slowdown from FQ3's 49%. Mobile accounted for 51% of GMV, up from 42% in FQ3 and 36% in FQ2. Annual active buyers +5% Q/Q and +37% Y/Y to 350M.
- A stabilizing monetization rate (revenue as a % of GMV) helped make the FQ4 beat possible: After falling 35 bps Y/Y in seasonally strong FQ3 to 2.7%, monetization rate fell just 1 bps Y/Y in FQ4 to 2.17%. Making this possible: Mobile monetization rate rose to 1.73% from 0.98% a year ago. Altogether, mobile revenue rose 352% Y/Y and was 40% of China retail marketplace revenue vs. 30% in FQ3 and 12% a year ago.
- Segment performance: China retail commerce revenue +39% Y/Y to $2.11B. China wholesale +42% to $136M. International wholesale +19% to $190M. International retail +53% to $70M. Cloud computing/Web infrastructure +82% to $63M. Everything else (boosted by acquisitions) +169% to $243M. Taobao GMV +29% to $61B; Tmall GMV +62% to $35B.
- Financials: Free cash flow +143% Y/Y to $914M; it trailed net income of $1.25B. R&D spend ($491M) was 17% of revenue vs. 10% a year ago; sales/marketing ($408M) was 15% of revenue vs. 11%; G&A ($400M) was 14% of revenue vs. 4%. Soaring stock compensation expenses (driven by the IPO) contributed to the spending growth. Alibaba had $19.7B in cash at the end of March.
- Yahoo (NASDAQ:YHOO) has risen to $44.95 thanks to Alibaba. SoftBank (OTCPK:SFTBF) has seen the value of 797.7M-share Alibaba stake grow by over $7B.
- Alibaba's FQ4 results, PR
Thu, May 7, 9:20 AM
Wed, Apr. 29, 1:50 PM
- Alibaba is down 3.4% following news Jack Ma recently told employees Alibaba won't add to its headcount this year, sparking concerns about the company's near-term performance ahead of its May 7 FQ4 report. Yahoo (YHOO -2.4%), whose 384M-share Alibaba stake (due to be spun off later this year) is currently worth $31.5B, has followed Alibaba lower amid a 0.7% drop for the Nasdaq.
- Separately, BI's Nicholas Carlson reports Yahoo is working on two new messaging apps as it belatedly tries to benefit from a mobile messaging boom. One app is said to be meant for group messaging, and the other for one-to-one communication.
- The Information previously reported Yahoo is working on a messaging app that "combines live and recorded video and text, blending aspects of live video apps like Meerkat, YouNow and Skype and the recorded video messages popularized by Snapchat." Yahoo was rumored to have been interested in participating in a recent Snapchat funding round, but there hasn't been any confirmation it did so.
Wed, Apr. 8, 1:48 PM
- Alibaba is up 3.7% thanks to a big Chinese Internet stock rally, and Yahoo (NASDAQ:YHOO) isn't getting left out of the fun. The company's 384M-share Alibaba stake is currently worth $32.7B.
- Meanwhile, The Information reports Marissa Mayer is planning a big reorg that could reduce Tumblr's independence. Mayer has reportedly asked Tumblr founder/CEO David Karp which Yahoo SVP he'd like to report to.
- A likely reason for the shakeup: The Information states Tumblr, which has continued seeing strong traffic growth since Yahoo's 2013 acquisition of the blogging platform, is unlikely to hit a $100M 2015 revenue target. Tumblr has been busy launching new ad formats, but some brands have been nervous about running ads against its content.
- Also: Mobile product chief Adam Cahan might assume control of video products, and Simon Khalaf, CEO of leading mobile analytics platform Flurry (acquired last year) is reportedly being promoted to SVP, and could assume responsibility for Tumblr.
Mon, Mar. 16, 10:56 AM
- Alibaba (NYSE:BABA) is up sharply in early trading after Chinese premier Li Keqiang suggested (amid slowing GDP growth) fresh stimulus efforts will be launched if needed, sparking a 2.1% overnight rally for the Shanghai exchange. Yahoo (NASDAQ:YHOO) is naturally following Alibaba higher.
- The gains come two days before a massive 437M-share lockup expiration arrives. 100M of the shares are subject to employee trading restrictions that will remain in place until Alibaba's FQ4 report (expected in May) is released.
- Short-covering could be aiding today's gains: Alibaba had 56.9M shares shorted as of Feb. 27, the highest figure recorded since a September IPO in which 368M shares were sold.
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