Dallas, Texas 09/30/2013 (Financialstrend) – Yahoo! Inc. (NASDAQ:YHOO) along with Microsoft and Facebook were among the top gainers on the stock exchange on September 27 even while the NASDAQ index shed close to 6% of its previous day valuation. While Facebook shares gained by 1.7%, Yahoo stock staged a smart 2.4% bull run. The primary reason for the upswing in Yahoo can be related to UBS raising Yahoo’s share price estimation by over $7 per share to $37.
Alibaba likely to go public on the Hong Kong exchange
This was done in the light of news that has emerged over the previous week that popular Chinese internet portal Alibaba is slated for a big bang initial public offering. Analysts are speculating that the overall market realization from the IPO would push Alibaba’s valuation close to $100 billion similar to Facebook’s IPO in 2012. Yahoo was one of the pioneer backers of Alibaba and owns close to 24% of the Chinese stock. If the purported Abilbaba IPO does generate a $100 market capitalization, then Yahoo share of the holding would be in the range of $24 billion. This would in turn bump up Yahoo own market cap which stands around $36.2 billion today.
Yahoo stock price surges up
The Yahoo stock has recorded a smart 8.4% increase in its share price over the past week. It has posted a 23% increase in stock value over the past month and a staggering 113% uptake since September 2012. The company has been able to show a impressive $4.15 billion income from sales of $4.82 billion in the past 12 months trailing period. These returns while healthy pale in front of stronger performances from its peers like Google and Facebook. Hence the Alibaba backed jump in value is most timely for the under pressure Yahoo. The share price of the stock is hovering around $33.55 as of September 27 close of business.