The typical honeymoon doesn't last too long before the hard work of marriage begins. And so it normally is with new corporate chief executives and their shareholders. Lucky for Marissa Mayer, as well as Yahoo shareholders, growth at Alibaba Group is extending the vacation.

Yahoo's second-quarter results, released late Tuesday, were unimpressive at best. Sales shrank 1% year over year, and the company forecasts no improvement in the third quarter. Ms. Mayer has little to show for her efforts a year after becoming CEO.

Still, Yahoo shareholders didn't seem to mind: The stock jumped 7% on Wednesday and now trades at a five-year high.

For that, credit is due to Yahoo co-founder Jerry Yang. He is no longer with the company, but he spearheaded Yahoo's investment in Alibaba. Yahoo, which owns a 24% stake in Alibaba, shared financial results for the Chinese e-commerce giant on Tuesday. Its first-quarter sales jumped 71% year over year to nearly $1.4 billion. Meanwhile, thanks to high and rising margins, operating profit more than tripled to $700 million. To put that in context, Evercore Partners EVR -1.33% projects that in 2014, Alibaba's operating profit will be nearly as high as Facebook's FB +1.25% revenue.

So investors keep buying Yahoo stock as a proxy for as-yet unlisted Alibaba. An initial public offering is expected soon, and Alibaba could be valued at as much as $120 billion, says Evercore.

Assume a more conservative valuation of $90 billion, and the after-tax value of Yahoo's stake would still be worth $15 billion, or about $14 a share. Add in Yahoo's stake in Yahoo Japan, 4689.TO +1.13% worth around $5 a share, as well as $4 a share of cash and Yahoo's core business is today valued at less than $6 a share.

Alibaba's expected valuation provides a good foundation for Yahoo's stock, while Ms. Mayer battles to turn around the aging Internet giant. She has started with multiple 'acqui-hires': buying small companies for their people, not their products. The hope is that the pricey talent can hit product home-runs at Yahoo. Meanwhile, the recent $1.1 billion deal to buy blogging service Tumblr gives Yahoo a better foothold in social media, though it will take time to get its users comfortable with seeing ads.

But these things don't happen overnight. Alibaba is buying Ms. Mayer some crucial time.

每日英语：Yahoo's Rally: Made in China的更多相关文章

  1. 每日英语：KFC's Crisis in China Tests Ingenuity of Man Who Built Brand

    Sam Su for years ran one of the highest-flying foreign business operations in China. These days, he' ...

  2. 每日英语：Why 'The Voice' Is China's No. 1 TV Show

    U.S. fans of the hit talent show 'The Voice' may take for granted that its judges sit with their bac ...

  3. 每日英语：Stalled Project Shows Why China's Economy Is Wobbling

    CAOFEIDIAN, China  $91 billion industrial project here, mired in debt and unfulfilled promise, sugge ...

  4. 每日英语：4G in China: A bigger deal than the iPhone

    Forget the breathless coverage of China Mobile offering the iPhone for a moment. Yes, it's huge news ...

  5. 每日英语：A Different Color: China's Chameleonic Politics

    China has tried your form of government and found it wanting. That was the message delivered by Chin ...

  6. 每日英语：why can't China produce world-class CEO?

    The appointment of India-born Satya Nadella as Microsoft Corp.'s CEO has caused a bit of a stir in C ...

  7. 每日英语：Dashing the China Dream

    Much has been said about what the 'China Dream' really means to many Chinese -- whether it is nation ...

  8. 每日英语：Tencent Fights for China's Online Shoppers

    In the war for the Chinese Internet, messaging giant Tencent is taking the battle to rival Alibaba's ...

  9. 每日英语：Does China Face a Reading Crisis?

    For much of the last year, intellectuals and officials in China -- land of world-beating students an ...

随机推荐

  1. Latex作者单位的写法—AND 首页脚注

    IEEE会议的模板 以四个作者为例 正常: 作者单位如果名字较短,可以直接写在作者对应的下面,邮箱可以对应写在再接下来的下面. 一 如果邮箱较长,可以用\thanks{ }命令将其变为脚注.例如: ~ ...

  2. Python学习（五）函数 —— 内置函数 lambda filter map reduce

    Python 内置函数 lambda.filter.map.reduce Python 内置了一些比较特殊且实用的函数,使用这些能使你的代码简洁而易读. 下面对 Python 的 lambda.fil ...

  3. ASP.NET 5 的Roadmap(转)

    这次随 Visual Studio 2015 发布的 ASP.NET 版本是 ASP.NET 4.6 与 ASP.NET 5 beta5.在 VS2015 发布的同时,微软也发布了 ASP.NET 5 ...

  4. iOS:转载FMDB文档

    来自会员pengtao的分享:(原文:https://github.com/ccgus/fmdb) 由于FMDB是建立在SQLite的之上的,所以你至少也该把这篇文章从头到尾读一遍.与此同时,把SQL ...

  5. 使用PowerDesigner建立数据库模型【转】

    1. 打开PowerDesigner,点击File->New 2. 选择Conceptual Data Model,并修改Model name. 3.  在Palette工具栏中点击Entity ...

  6. C#文件系统管理【转】

    目录 前言 Directory类和DirectoryInfo类 File类和FileInfo类 Path类 前言 管理文件系统主要是对计算机中文件和目录的管理,例如,读取文件信息.删除文件和读取目录信 ...

  7. IP数字，数字IP

    DECLARE @ip VARCHAR(60)='113.118.138.159'DECLARE @ip_int BIGINT=[dbo].[f_IP2Int](@ip) SELECT [IPstar ...

  8. git/github运用

    了解git和svn很久了,但是一直没有拿来做过版本控制管理,虽然svn有用到过,但是觉得还是运用git的比较多吧,尤其github. Git术语                             ...

  9. Understanding the JavaScript Engine—— two phase

    Understanding the JavaScript Engine — Part 1   I have been a Ruby on Rails developer for the last 2 ...

  10. 【Python】理想论坛每小时发帖量统计图表

    写以下代码的目的是分析一天中各时段理想论坛中用户发帖回帖的活跃程度,获得结尾那张图表是核心. 以下代码两种爬虫协助,论坛爬虫先爬主贴,爬到主贴后启动帖子爬虫爬子贴,然后把每个子贴的发表时间等存入数据库 ...