Yahoo! Fans Expect to See Fireworks

Raising his estimates for Yahoo! this year and next, Terry raised his second-quarter revenue forecast from $615 million to $628 million, and his full-year revenue forecast from $2.5 billion to $2.7 billion. CSFB has done banking for Yahoo! in the past year.

Meanwhile, the rest of the Net sector has faded as the summer heat has rolled in. Though some rivals rose sharply in the second half of 2003 through early this year, Yahoo!'s rally has been of little help to other search-engine companies. While LookSmart (LOOK Quote) is up 5% since Yahoo!'s first-quarter earnings announcement, shares of Ask Jeeves (ASKJ Quote), FindWhat.com (FWHT Quote) and Mamma.com (MAMA Quote) are all down.

On the other hand, interest continues to build in the impending initial public offering for Google. The auction-style IPO for Overture's chief rival is expected later this year.