This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

It's Time to Sell Yahoo!

Stocks in this article: YHOO FB GOOG AMZN DIS FOXA CMCSA CBS

NEW YORK (TheStreet) -- If you have Yahoo! (YHOO) stock, sell it, because the value of the company's stake in Chinese Internet company Alibaba seems to be fully realized.

Yahoo! is not growing, nor is it likely to. For its most recent quarter, Yahoo! announced GAAP earnings of $30 million, or 29 cents per share, on revenue of $1.09 billion, excluding traffic acquisition costs.

That was considered a positive surprise. The stock rose 8% overnight, mainly because Alibaba, the company of which Yahoo! still owns 24%, had $3.06 billion in revenue, a jump of 66%.

Once Alibaba goes public, later this year, those who want to bet on it will have Ailbaba's stock to play with. We have reached peak Yahoo!, in other words, and it's time to sell.

That is also true, by the way, if you're a member of Yahoo!'s board. It is time for you to find a buyer. 

WATCH: More market update videos on TheStreet TV


CEO Marissa Mayer has now spent 17 months huffing, puffing and buying smaller companies. She has turned over the staff. She has had her chance to produce growth. And today's Yahoo! is little changed from the company she joined.

Yahoo! is an Internet media company, accent on media. Yahoo! is news, weather and sports -- not search. And Yahoo! doesn't have the financial heft to compete in technology against heavyweights Facebook (FB), Google (GOOG) and Amazon  (AMZN). There, Yahoo! is a minnow among sharks. If they want something Yahoo! wants, Yahoo! will be outbid.

But who would buy Yahoo!?

Alibaba is the most obvious buyer, but Yahoo!'s big presence in media may have immunized it from that takeover. The idea of a Chinese company buying a U.S. media outfit, even an Internet media outfit, would likely prove more trouble than it was worth.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs