Yahoo! Inc. (NASDAQ:YHOO) is on its mark, getting set and waiting to go just after the closing bell tonight as the company is scheduled for its earnings call. There are two possible states that Marissa Mayer, Yahoo’s CEO, could be in, and being excited is none of them. It’s a matter of survival for Yahoo; Liz MacDonald of Fox Business reported on the expectations of Wall Street for the tech company.
“[…] Here is what Wall Street is Looking for: 30 cents a share in earnings per share for Yahoo! Inc. (NASDAQ:YHOO). Marissa Mayer will be on the earnings conference call facing a lot of tough questions. You know, the end revenues haven’t been so great for the four of the last five quarters […],” reported MacDonald.
These are nerve wrecking moments for Mayer, since yesterday’s episode with International Business Machines Corp. (NYSE:IBM) in which the stock fell about 7% after an abysmal earnings report and is down a further 4% today. Most people would not want to be in her shoes right now since, to put it simply, Yahoo! Inc. (NASDAQ:YHOO)’s lackluster track record speaks too loudly for it.
However, in my opinion as strange as it sounds, there is little to worry about, since the report card that Mayer holds in her hand has little value. Several calculations had surfaced about Yahoo! Inc. (NASDAQ:YHOO)’s valuations during and after the IPO of Alibaba. Most of them ranged from negative to zero, as far as the company’s worth is concerned. The only interesting thing about Yahoo is the company’s merger and acquisition plans using the cash that has been sitting in Mayer’s lap after Alibaba’s IPO.
“[…] What will Marissa Mayer do with Yahoo’s gain on the sale of its shares in Alibaba, more than $9 billion, more M&A deals, stock buybacks, dividends? The question for Wall Street is M&A deals. That’s what they are focusing on. Bright Role is an add platform that they are talking about, that Yahoo! Inc. (NASDAQ:YHOO) could buy […],” said MacDonald.
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