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Alibaba steals Yahoo's thunder ahead of IPO

Published on Apr 17, 2014 8:54 AM
The headquarters of Alibaba on the outskirts of Hangzhou, Zhejiang province. -- FILE PHOTO: REUTERS

NEW YORK (AFP) - If Yahoo appears back in favor, it can thank Alibaba, the Chinese Web giant in which it holds a big stake and that is set for a public stock offering.

Yahoo shares soared 6.26 per cent to close at US$36.35 Wednesday on the heels of a better-than-expected quarterly report, but some were more focused on the Alibaba financial results buried in the document.

"The salient point of Yahoo's first quarter results was the very strong December quarter results from Alibaba," said Jordan Rohan, analyst at the brokerage Stifel.

"Alibaba's results paint a favorable picture for a favorable IPO despite the recent period of weakness in the Internet sector."

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