Yahoo! continues higher courtesy of CEO Marissa Mayer, who celebrated her first anniversary with the company this week. Also lifting Yahoo!'s shares is the ownership stake in Chinese Internet giant Alibaba. I discuss the relationship in "I Love Yahoo!'s Earnings Results, and You Should, Too."
Mixed in with the medicine was some sugar. YouTube is now making money. It's hard to imagine all those cat and kid's videos could turn a profit, but between the mix of craziness, Google managed to find a way. Video ads and a change in the mix of banner sizes appears to be what was needed. I expect if the company can make a profit now that it can expand well beyond that.
The expansion may include streaming entire movies, much to the chagrin of Netflix (NFLX). Netflix needs to figure out how to offer more than a one-size-fits-all T-shirt if it wants to make it to the other side. I can't believe Carl Icahn hasn't pushed the C-suite along a little faster, but he probably has his hands full with Dell (DELL) right now. Even billionaires have only 24 hours in a day.
Bottom Line: Look for Google shares to quickly recover, and carry on their upward momentum into new 52-week highs; don't let the market shake you out.At the time of publication, Weinstein held no positions in stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts