Yahoo! Plummets After Microsoft's Exit

"Yahoo! is much more even in mobile search with Google," he says. "You might as well fight a battle you have a chance of winning."

But analyst Trip Chowdhry of Global Equities Research says he is hesitant to get behind a relationship between Yahoo! and Google, especially when neither company has revealed much information about the two-week test.

"Why should investors cheer it up when Yahoo! or Google hasn't put a dollar number on it?" Chowdhry says.

He adds that Yahoo! is better off going at it alone and should try to reinvent itself much like IBM(IBM Quote) did -- even if it takes years.

"It is not a quick fix," Chowdhry says. "You should not hold Yahoo stock if you're in it for days, weeks or months."

Chervitz, however, sees Wall Street's patience with Yahoo! wearing thin.

"We're not a patient bunch," he says. "I find it difficult to believe Wall Street will be patient enough with Yang to do a long-term turnaround."

In fact, Chervitz maintains that the only positive thing to come out of this collapsed deal with Microsoft is that Yahoo! now sees that it cannot sit on its thumbs as its business stagnates.

"The good news, if there is good news, is now they cannot not act and cannot let the stock meander in the low 20s or wherever it ends up settling," he says. "Shareholders will not sit quietly if Yahoo! doesn't realize some of that value on its own. The market has prodded Yahoo! into a heightened sense of urgency."