Yahoo added another $5 billion to its buyback program, sending shares higher once again as investors wait to see the results of the Internet giant's recent investments.
"This stock has done tremendously well. ... This largely reflects the significant stake in [Chinese Internet company] Alibaba Group as well as substantial buyback activity over the last number of years," said Scott Kessler, equity analyst at S&P Capital IQ.
"The reality is, if you look at Yahoo and its financial performance, growth has been lacking and tremendously difficult to find on a consistent basis," Kessler said.
With CEO Marissa Mayer at the helm, Yahoo has purchased 23 companies with an aim to expand the company's revenue, noted CNET Executive Editor Roger Cheng.
"What we're seeing right now is Yahoo [making] the shift from a simple search company to more of an entertainment company. She wants to entertain, be more mobile," Cheng said.
"She's reformatted old stodgy properties like Yahoo Mail, Flickr, she had that $1 billion acquisition of Tumblr ... the fact that she's doing a lot right now, she's positioning the company for growth. Whether or not that growth actually comes is still unclear," Cheng said.
Yahoo said it expects Tumblr to add to the company's revenue next year.
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—By CNBC's Althea Chang