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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
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
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV