The Alibaba Group announced its first-quarter earnings report today, which must make the investors of Yahoo! Inc. (NASDAQ:YHOO) really happy, owing to the large stake that Yahoo! Inc. (NASDAQ:YHOO) owns in the Alibaba Group. The Alibaba group’s revenues from its China commerce business increased 46% year on year to $2.15 billion, which forms a significant chunk of its total revenues of $2.54 billion in the first quarter, ended June. Cory Johnson discussed Alibaba’s revenues and its proposed deal with SnapChat on Bloomberg, recently.
“Alibaba is a giant profitable free cash-flow creating business. We saw revenues grow on a year on year basis of 46%. Now, they are just starting to report the June quarter as they get ready for an IPO that we expect sometime probably in the next month. So, showing 46% year over year revenue growth on a business that is quite profitable, just shows you how profitable this business is and shows you the business model […],” Johnson said.
Johnson mentioned that he was going through the numbers closely as the 46% year over year growth numbers can be sort of “funkiness” that company display before going for an IPO in order to sell a lot of shares. Johnson also remarked that the Alibaba Group’s IPO can be the largest IPO ever in the history of public markets. We are sure, if it actually turns out that way one of the biggest beneficiaries of that would be Yahoo! Inc. (NASDAQ:YHOO). With its core business not doing as well as expected, Yahoo! Inc. (NASDAQ:YHOO) is counting big on the success of Alibaba Group’s IPO.
Johnson also mentioned the financing deal that was supposed to happen between messaging service SnapChat and Alibaba Group, clarifying that the talks have ended and Alibaba won’t be funding SnapChat as of now.
As of June 30, 2014, Ken Griffin’s Citadel Investment Group owns over 8 million shares of Yahoo! Inc. (NASDAQ:YHOO).