News came out today that leading Chinese internet giant Alibaba Group is planning an IPO in 2013 or 2014. The rumors have spread across several leading Chinese technology news sites. News of an IPO will give investors the opportunity to invest in a huge Chinese tech conglomerate, but also will put Yahoo (YHOO) in the spotlight for 2013.
As a value play, shares of Yahoo look cheap. When subtracting out the cash position of $7.11, Yahoo shares trade at 11 times 2013 projected earnings per share of $1.14. Yahoo has beat analysts' expected earnings per share in each of the last three quarters. Yahoo certainly appears to be back from the dead and 2013 could be one of its best years.