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Yahoo! Earnings: Getting the Amazon Treatment From Investors

If Amazon gets the magic dust sprinkled on it for being an ecommerce juggernaut, why shouldn't Alibaba? After all, Alibaba is going to pass Amazon in size next year, according to many analysts. Alibaba's net income next year will be bigger than Amazon's Ebitda this year.

As we get closer to an Alibaba IPO date, expect some of that IPO mojo to power its way into Yahoo!'s shares.

In terms of the quarter results, I wish the display ads had been better. They were down 11% vs. a year ago. Search revenue were up a lot, as I expected. Mayer knows how to wring more money out of that business. Search is actually now a bigger business for Yahoo! compared to display. That's the first time in a long time it's been the case.

Everyone, of course, wants the company to get the revenue up. Mayer knows that. And she will get them there. But this is going to take some time.

There's no one else who could have come in and turned things around in nine months. There are some Marissa Mayer haters who want to say "the honeymoon is going to be over because she hasn't delivered enough yet." But that's just silly. Yahoo! is a totally different company now from a year ago. Yahoo!s are proud to work there. That wasn't the case last year.

In terms of Yahoo! being Switzerland, Mayer explicitly talked about it last night.

She said: "People don't realize that we are the only company with long-term partnerships with Apple (AAPL), Google (GOOG), Microsoft (MSFT) and Facebook (FB)."

I think people don't realize the power of that positioning and the fact Yahoo! can further leverage this neutrality going forward. We saw what happened last week at just the suggestion that Yahoo! might further partner with Apple. Imagine how that helps the stock if it gets formalized. It might partner with Google in mobile search, keep the Bing alliance for Web search and do something more substantial with FB -- all at the same time. This could be extremely powerful.

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