The figures posted by Yahoo for its first-quarter did not inspire much confidence on where the company is heading and it showed with the number of investors who were not interested in the company. The company made a brave decision to open up its wallet again so as to sell off some its stake in Yahoo Japan, a move that proved vital as investors were once again interested with Yahoo. Come Tuesday as the company was announcing its revenue and its adjusted earnings, the company’s shares were down 35 cents, that’s about 0.8% to close the day at $44.14. This is despite the fact that the company had missed both its revenue and adjusted earnings figures.
To well understand just how important Yahoo’s wallet and assets are to the stock, Eric Sheridan from UBS measured how much the key assets of Yahoo cost. Here are the statistics that he came up with. 88 percent of what he says with regards to the worth of Yahoo is to do with everything apart from the company’s core business. According to Sheridan, Yahoo’s stake in Alibaba is estimated to be worth $38.98 a share, that’s 2/3rds of the $59 share that the company is worth, he noted.
Sheridan states that Yahoo is worth $59 a share that is an increase of 34 percent if you are to compare it with the current figure. Sheridan adds that, Yahoo’s move to monetize its stake it’s Yahoo Japan is a plus that took many by surprise.
Also good to note is the fact that Yahoo has posted revenue growth in emerging areas such as video and mobile. According to Sheridan the company has posted a 58 percent growth when it comes to emerging areas.