Yahoo Q4:2007 Results

Yahoo reports revenues a touch light with operating income 10% better than estimates. They guide the full year 2008 revenues ex-tac (traffic acquisition costs) to a range of 5.3 - 5.8 billion with the street using a "soft" number of 5.8 billion. Their operating income guidance looks downright lousy. The stock was telegraphing numbers coming down -- look at the sickly chart (click on it for a close-up).



They're still in a lot of flux. The old guard must go but they won't unless they're forced out. It's a very valuable media property in terms of market share and user base. The question is how low does the stock price have to go to force large media companies to buy a fixer-upper. It's not going to be easy to hold onto through the bonfire of the vanities to come. The problem with a story like this is the stock needs to get beaten up for something good to happen for shareholders... it's bad but I can't tell you exactly when it's bad enough. There's probably easier places to make money than here.

Pass.