TheStreet.com Internet Sector

index advanced 41.94, or 4.3%, to 1013.92.

TheStreet.com New Tech 30 was up 40.51, or 6.3%, to 682.22.

Yahoo!

(YHOO)

just beat earnings estimates last

night. Excluding one-time items, Yahoo! earned $63.3 million, or 10 cents per diluted share, in the quarter, compared with $17.7 million, or 3 cents a share, in the year-earlier period. That compared to the 9-cent estimate from

First Call/Thompson Financial

. In back-and-forth trading, Yahoo! was recently down 3 5/16, or 2.0%, to 162 1/4, having traded between 159 3/4 and 171. This may reflect disappointment that Yahoo! did not meet the whisper number of 12 cents a share.

CNBC's

Maria Bartiromo reported that the queen bee of Internet analysts,

Morgan Stanley Dean Witter's

Mary Meeker, spoke glowingly of Yahoo!, saying it was "going to be the next

Microsoft

(MSFT) - Get Report

." We couldn't reach Meeker to see if that meant she thought the government would attempt to break up Yahoo! for antitrust violations, but assume she didn't. Meeker also reportedly said that Yahoo! along with

eBay

(EBAY) - Get Report

were must-owns in the Internet sector.

While most analysts talked up the earnings report, saying Yahoo! was the best thing since sliced bread and

Krispy Kreme

(KREM)

,

TheStreet.com

dug up some dirt.

SG Cowen

analyst Scott Reamer used words like "solid," "healthy" and "very strong" to describe various parts of Yahoo!'s report. But Reamer also touched on something few others of its unabashed backers would say, writing:

But was all this enough to break the back of the persistent fear that has struck Internet stocks generally? That's a tough call, but our initial answer is "probably not": Yahoo! had a strong, upside surprise quarter, but not one that gave you a sense that the business is significantly better than the Street would have hoped, even despite the a-seasonality of Q1 revenues. Costs were better than expected, but, again, in-line with previous quarters. Net/net, most of the unofficial expectations for the model were met or slightly exceeded, suggesting to us that, in a terrible tech market, investors may hold off buying this name aggressively soon.

And what can be better than a 1000 price target? That's apparently what SG Cowen slapped on previously unknown

QXL.com

(QXLC)

. The European online auctioneer was up 30 1/4, or 136%, to 52 9/16. The stock split 3-for-1 as of today, so the current target is actually 333 1/3. SG Cowen was an underwriter for QXL, and the price target was for 24 months.

Finally, what kind of self-respecting news organization would we be if we did not beat up on the downtrodden?

Salon.com

(SALN)

was down 5/8, or 15.4%, to 3 7/16 after the Internet media company warned of a wider-than-expected loss for its fourth quarter, due largely to the departure of a key sales executive. The company said it expects to report a loss for the quarter of 35 to 42 cents a share on revenue of $2.5 million to $2.9 million. The current expectation is for a loss of 33 cents a share.

Also,

Beyond.com

(BYND) - Get Report

was down 1/8, or 3.9%, to 3 1/8 after the company said it will take a higher-than-expected restructuring charge of $11 million to $14 million in the first quarter. In January, Beyond.com cut approximately 20% of its workforce and consolidated its satellite offices in a bid to focus on the business-to-business market.