Yahoo!’s has had bad luck for some time, no doubt.
After all, they feature Google as their search engine of choice in 2000… who knew that would propel Google to become a $200B entity whereas Yahoo! has to now wear a butt plug just to avoid being bear-hugged by MSFT? (sorry, I presume, for that imagery), but how else would you describe Yahoo! bending over for Google eight years after Google first began to ride Yahoo! to success and riches?
As a shareholder, I am appalled.
Anyway, as an onlooker, I ask: is that dumb or just unlucky? I don’t know. But in the same vein: YHOO has now cornered itself into really beating the Street’s expectations and upping guidance.
YHOO - who has consistently disappointed investors for abour 3 years now - is all of a sudden stepping into the batter’s box facing juiced expectations. This for a company that a mere three months ago bombed and lost all shareholder credibility. Yet now, with a worsening marketplace in the backdrop, suddenly, YHOO is expected to go yard:
Mark Mahaney, Citi: The company needs revenue of more than $1.32 billion, with guidance for the coming quarter of more than $1.37 billion. Anything just in the $1.3-$1.32 billion range would be neutral. He too is looking for some mention of the Google deal.
Either way, it won’t be pretty tomorrow after the market close… by trying to prove to Redmond that they have a bigger you-know-what, they have so upped expectations that they need to be very lucky not to look dumb.
Disclaimer: I’ve sold boatloads of shares, but remain lightly LONG YHOO.
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