Yahoo Stock Jumps On Earnings Beat

Anderson Klein warns that, despite earnings beat, Yahoo remains a company with an unclear business model. Anderson Klein has welcomed the sharp jump in Yahoo stocks after the company posted earnings and revenue results that beat analysts' expectations but warned that there is still a lack of clarity over what the company is. "We continually ask ourselves this question; is it a search engine, and advertising billboard or is it an online magazine," opined an Anderson Klein technology sector analyst. The company's stock has dropped by 15% this year but in recent weeks, has embarked on something of a renaissance. "Some, us included, believe that much of the jump in the stock price after the earnings results has more to do with the fact that Yahoo holds a 24% stake in Chinese internet leviathan, Alibaba Holdings which is due to go public with an IPO this year." he added. Indeed, with Alibaba expected to be valued at a formidable $140-150 billion after the floatation, Yahoo will be sitting on stock worth more than $35 billion. Yahoo's stock has doubled since CEO Marissa Myer joined from Google in 2012 but there is still concern that the company is still bereft of a clear corporate path. In recent weeks, there has been speculation that Yahoo is targeting high-end video which would apparently boost its online video programming and video advertising revenue streams but, according to Anderson Klein, such a move would only serve to further confuse consumers and web users over Yahoo's core role in the market. "We'll be asking whether Yahoo is trying to compete with Netflix if the video stream comes online," concluded the Anderson Klein analyst.