Yahoo

YahooYahoo’s plan to keep a larger-than-expected stake in e-commerce giant Alibaba after the Chinese company’s IPO prompted at least seven brokerages to raise their stock price targets on the U.S. company. Shares of Yahoo were set to open 3 percent higher after the company said it was selling less of its 24 percent stake in Alibaba Group Holding Ltd’s planned initial public offering in 2014. Analysts expect Yahoo to benefit from retaining a larger stake in Alibaba, which reported strong sales and profit growth in the second quarter. Yahoo reported tepid profits on Tuesday, in the face of strong competition on online advertising from Facebook and Google. “Yahoo continues to lose share in both display and search (advertising), but short-term, the stock should continue to benefit from Alibaba’s very strong execution and prospects for a much sought-after IPO,” Cantor Fitzgerald analysts wrote in a note.

Read the full story at Reuters.

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