has come and gone and we did exactly what I said we would do: We bought it down 10.
What really happened here? Was it really not a better-than-expected quarter? Was there really some sort of issue that spooked people?
Yes and no. Yes, this time there were analysts who were not as jazzed about the quarter. They tended to be people who wanted Yahoo! to "save" the dot-com movement from its recent flirtation with oblivion. Yahoo! could never deliver enough for these people. To these summer soldiers Yahoo! had to raise the bar, blow the numbers to smithereens and make people feel that all was well in the dot-com biz.
Instead, Yahoo! simply did a great quarter. It did not pulverize the estimates or vaporize the estimates or crush the estimates. It beat them handily. It raised the bar, but not to some level that would be impossible to beat, which so many companies do, stupidly, in the name of keeping the momentum going.
Without the big pop in the stock, despite
intoning that Yahoo could be the next
-- something that I actually believe -- holders panicked because the pattern has been that, a few days after reporting, lots of restricted stock comes off restriction. They didn't want to stick around for that avalanche.
So, we hold it. We hold it because we think that years from now it will be much higher. That is why we have held it for three years now.
I know that I belong to the church of what's happening now. I know that is my reputation. I plead guilty to it. But I hold on to my Yahoo! I just don't care what happens to this one short-term.
It's probably the only stock I feel that way about. Except maybe
, Microsoft and
. I just feel naked without them.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Yahoo!, Cisco, Intel, AOL, Microsoft and Nokia. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at