After the close last night Yahoo! (YHOO) beat the Zacks
Consensus Estimate by $0.11 or 45%. That follows a beat of
$0.07 or 23% in the previous quarter. That shows some true
While search remains challenged, the company was able to
deliver bottom line results through better margins.
The new CEO, Marissa Mayer was joined on the conference call
by the new CFO Ken Goldman and they discussed a broad vision for
the company. Mayer focused on mobile, content and
partnering with other technologies to improve the user
experience. The other, and likely bigger point was the
focus on using cash from the Alibaba transaction to buy back
To me, it seems like this is a case of perfect timing for
Marissa Mayer. Carol Bartz started the initiatives to
improve margins, which she did, but lacked direction and was
burdened by a board of directors that could not pull the trigger
on the Alibaba deal. Fast forward through the Scott
Thompson debacle and you have a tons of cash for a buy back and a
more attentive board.
Mayer comes in with margins moving higher, tons of cash on
hand for stock buy backs and clearly has the full support of the
board to put her stamp on the company. Add it all up and it
seems like she just cannot fail. With the stock on the move
from its $15 address of the past year, is now the time to get in
#1 - Buy in, get long and get loud. Maybe even switch
#2 - Wait and see, I want to see some search share
#3 - Sell the news, this stock lives with a $15 handle, so any
chance to sell it at $16 and change is free money.
Let us know what you think!
YAHOO! INC (YHOO): Free Stock Analysis Report
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