Tomahawk, WI 10/16/2013 (BasicsMedia) – Very few digital media companies have accomplished even half of what Yahoo! Inc. (NASDAQ:YHOO) has managed. The company’s market cap currently stands at $35.55 billion, and this is considered much lower and not a true reflection of what YHOO is truly worth. . The company has just announced its latest quarterly results and I have to say that they impress me. What YHOO has earned in revenue is beyond what even the most optimistic analyst would have expected. Let us look at the reasons of factors that contributed to the impressive results.

YHOO’s Impressive $1.1 Billion Revenue

The quarter or period ending September 30 has seen YHOO report that its revenue was $1.1 billion. YHOO has benefited a great deal from its operations in China. There is concern as to whether it will continue enjoying similar results now that the Chinese operations are about to end. Investors are concerned that the company may struggle to post similarly impressive results like those it has just released for third quarter of 2013. I believe the company can make a complete turn once it stops relying too much on the operations in China, and look elsewhere.

One may be forgiven for thinking that YHOO is in love with the figure $1.1 billion. Last year at such a time as this, it posted revenue of $1.1 billion. This year, analysts predicted that YHOO would still earn $1.1 billion in revenue, and this is exactly what has happened. Yahoo Inc has benefited a lot from its acquisition of Alibaba.com, which is a Chinese company. This has been responsible for much of the growth we have seen in YHOO. Now that Alibaba.com is to go public soon, YHOO will need to think of new strategies to maintain or improve its financials.

YHOO’s Alibaba.com To Go Public

I expect YHOO to make a kill once Alibaba.com goes public. The next quarterly financials will give us an indication of just how much money YHOO will make from this deal. The biggest challenge facing Yahoo Inc is to find a way of using the money it gets from the sale of Alibaba.com on other productive ventures. Yahoo can pursue several activities once it gets this money. It could roll out a massive share buyback strategy, or make new acquisitions that will help it financially. It could also opt to reinvest the money in developing its current business.

The company’s stock has improved by close to 70%v since the start of the year. It has encountered many losses, but what has impressed me is its ability to shore these up. I know that the company has received massive help from its Chinese business in the form of Alibaba.com, and this is the single reason why it has managed to shore its losses up and not go down. Its core business is still not in good health, but this can improve once it gets and reinvests its money in the business. It still has passionate and loyal customers who believe in its core business.

When YHOO got a new CEO, Marissa Meyer, investors were promised a golden future, and this is what they still looking forward to enjoying.

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