Yahoo's stock climbing under new CEO's strategy
BY Associated Press
Tuesday, November 27, 2012
11/27/12 at 4:12 AM
Yahoo's shares touched $19 Monday, the first time they traded that high since April 2010.
The rise extends a rally that has been gaining momentum in recent weeks as Yahoo Inc. buys back its own stock and more investors bet on CEO Marissa Mayer's ability to turn around the long-struggling company.
Mayer, a former top executive at Google Inc., became Yahoo's fifth CEO in less than a year when the company hired her in July. Since her arrival, she has vowed to make Sunnyvale, Calif.-based Yahoo a better place to work, refine its online services and roll out more products tailored for smartphones and tablet computers.
After taxes, the company pocketed $4.3 billion by selling half its stake in Chinese Internet company Alibaba Group Ltd.
Mayer has pledged to spend $3.6 billion buying back Yahoo's stock. Since she made the buyback commitment, Yahoo's stock has climbed by nearly 20 percent.
Goldman Sachs analyst Heath Terry believes Yahoo's stock will climb even higher, as more investor enthusiasm builds for Mayer's turnaround strategy and the value of the company's remaining holdings in Asian Internet companies becomes clearer. Besides retaining a 24 percent stake in Alibaba, Yahoo also owns 35 percent of Yahoo Japan.
After climbing to $19 in Monday's early trading, Yahoo shares closed at $18.75, up 18 cents.
Marissa Mayer: The former Google executive became Yahoo's fifth CEO in less than a year when the company hired her in July.