Hungry investors eyeing the next Amazon-style technology heavyweight tuned into Yahoo's earnings release on Tuesday evening. Keeping a close eye on the results of Chinese e-commerce site Alibaba - with a flotation expected this year - market watchers were left disappointed with growth in sales slipping in its July to September period.
Search giant Yahoo, which owns 24 percent of Alibaba, said that the Chinese online marketplace posted 51 percent revenue growth during the quarter to $1.78 billion compared with $1.18 billion a year prior. Meanwhile, Amazon reported a revenue increase of 24 percent to $17.09 billion from $13.81 billion a year ago for the same quarter.
Whilst this may be seen as scorching growth for Alibaba, it was less impressive than a 61 percent rise seen in the previous quarter, and a 71 percent rise in the quarter before that.
(Read More: Yahoo slides after disappointing earnings outlook)
There was a similar trend in the company's gross profit which has led analysts to suggest that the days of its trailblazing growth may be behind it.
"Alibaba results were a bit lighter than we had modeled so we are reducing our estimate for Alibaba's value to $145 billion (versus $160 billion) before," Shebly Seyrafi, an analyst at FBN Securities said in research note.
Seyrafi now believes that Alibaba alone is worth $21 of Yahoo's stock price, which closed at $38.22 on Tuesday evening. Although after hours trade is pointing to a lower open, FBN Securities has a target value of $45 and has reiterated its outperform on Yahoo.