I would say most people who are investors in Yahoo! look at the investments in Alibaba and Yahoo! Japan first and foremost. I think Alibaba IPOs in the second half of this year for over $80 billion. The stake in Yahoo! Japan is worth $10 billion now (pre-tax), double what it was back in December. That means, on an after-tax basis, you're getting the Alibaba and Yahoo! Japan investments, plus Yahoo!'s cash (over $5 billion) for $25 billion out of the total market cap of $26.5 billion. That means at current prices, YHOO's core is only being valued at $1.5 billion. I don't care how bad display ads were in the quarter. That's too cheap!
In my view, this is a big blind spot for Apple. It has the cash to buy both Twitter and Yahoo! and that would totally change the landscape for mobile phone competition. If I was Tim Cook, I'd put Marissa Mayer in charge to run it and try and ensure that the cultures of Twitter and Yahoo! was left alone from the rest of Apple. They are very different cultures. Yahoo!'s stock getting the Amazon treatment? Who would have expected that six months ago? At the time of publication the author was long YHOO. Follow @ericjackson This article was written by an independent contributor, separate from TheStreet's regular news coverage.