Own Yahoo!? Lucky You

With its shares trading at a level not seen in four years and rumors of imminent layoffs circulating, Yahoo!'s(YHOO Quote) first-quarter earnings report after Tuesday's closing bell comes with dark clouds overhead.

On the other hand, many on Wall Street continue to hope that much of the company's woes are now reflected in its battered stock price. And as it drifts lower -- shares closed at $20.78 on Monday, off more than 30% in the past three months -- speculation grows that the company could be an acquisition target as its market cap shrinks to less than $28 billion. Search rival Google(GOOG Quote), for example, sports a valuation of more than $173 billion.

For some investors, that's another reason to bet on a Yahoo! rally. ...