Yahoo! profit spikes with Alibaba stake sale
SAN FRANCISCO (AFP) - Yahoo! on Monday reported that its quarterly profit rocketed above US$3 billion (S$3.7 billion), fueled by the sale of part of its stake in Chinese e-commerce giant Alibaba.
Alibaba last month announced that it bought back billions of dollars worth of stock from Yahoo! in a step toward independence from the US Internet pioneer.
The California company's revenue from display advertising was little changed from the same quarter last year but Yahoo! reported its income from ads served up with online search results was up 11 per cent.
The earnings topped Wall Street expectations and Yahoo! shares climbed nearly three percent to US$16.20 in after-market trading on the Nasdaq.