Stock Rises on Yahoo!’s Earnings

NEW YORK Yahoo!’s shares rose 16 percent to close on the Nasdaq today at $56.21, following yesterday’s news that the its first-quarter net income doubled on revenue of $758 million. The Sunnyvale, Calif.-based company also said yesterday that it plans a two-for-one split of all outstanding shares of its common stock on May 11.

Other Internet company stocks on the Nasdaq reacted positively after the earnings report from the Web portal, a bellwether of online advertising. DoubleClick shares (DCLK) closed today at $12.63, up 8 percent, while Valueclick’s (VCLK) closed at $12.48, up 15 percent. AskJeeves stock (ASKJ) rose 5 percent to $40.50. Digitas stock (DTAS) closed at $10.57, while aQuantive shares (AQNT) closed at $11.06, up 8 and 10 percent, respectively.

Yahoo! yesterday reported Q1 net income of $101 million, or 14 cents a share, up from $47 million, or 8 cents a share, in the year-ago quarter. Revenue increased 168 percent from $283 million to $758 million.

More than 80 percent of the Web portal’s overall revenue in Q1 came from advertising and marketing. Revenue from marketing services was $635 million, up 235 percent from $190 million during the same time last year. Yahoo! attributed the whopping year-over-year boost to increased revenue from its search and marketplace properties, as well as incremental revenue from Overture, the commercial search company it purchased last October.

Comparatively, the Internet company’s listings and fees-related services saw modest progress. First-quarter revenue from its fees-related services, including its dial-up and DSL products and Yahoo! Personals, rose 39 percent to $88 million. Meanwhile, Q1 year-over-year revenue for its listings services grew 16 percent to $34 million.