Yahoo continues to make strides under the leadership of Marissa Mayer, though it's the company's stake in Chinese online retailer Alibaba (which may IPO in 2014) that's proving to be particularly valuable.
Yahoo July 15 released its Q2 2014 results, with the Sunnvayle, CA, company earning 37 cents per share on $1.04 billion in revenue, missing analysts' expectations of 38 cents per share on $1.08 billion in revenue. Yahoo generated $1.07 billion in revenue in Q2 2013.
Mayer defended Yahoo's disappointing Q2 performance, saying in an earnings call that "transformation is not a single event." She said the company's recent string of acquisitions was in part designed to bring high-quality talent to the company, talent who can help the company grow in the future.
On Sept 12, Yahoo's stock price closed at $42.88, its highest level since Jan. 10, 2006. Yahoo stock is up 3.4% for the year. Investors were likely buying up the stock in anticipation of Alibaba's IPO.
Yahoo gets Alibaba boost, Ulta surges on earnings - MarketWatch
Yahoo is estimated to have earned $5.1 billion Sept. 19 after selling about one-quarter of its stake in Chinese e-commerce company Alibaba, which began trading publicly earlier that day. (Yahoo previously agreed to sell some of its stake upon IPO.) Yahoo first acquired the shares in 2005 after investing $1 billion in the company.
Yahoo's stock price fell about 2.7%, to $40.93 at the close of trading Sept. 19. The company said in July it would return about half of the money earned from the Alibaba share sale to stockholders. It has not said what it plans to do with the rest of the money.
Activist investor group Starboard urged Yahoo in a Sept. 26 letter to explore "the synergies that we believe Yahoo could unlock in a combination with AOL." The firm, which claims to have a significant stake in Yahoo, says the $1.3 billion spent by Yahoo on acquisitions hasn't delivered value to its shareholders.
Starboard Delivers Letter to CEO and Board of Directors of Yahoo! Inc. - MarketWatch