After hours yesterday, I sold most of my Yahoo (NASDAQ:YHOO) shares on uninspiring core results and probably in-line Alibaba results. Barron's provides a thorough review of analysts' thinking today in its extensive blog post on YHOO. There's only so much Alibaba valuation I'm willing to accept given that its results are a summary "black box" based on minimal disclosure YHOO provides. Meanwhile, the turnaround is taking the length of time that Ms. Mayer warned of. The one bullish surprise yesterday I noted was that the company will likely sell fewer Alibaba shares on the IPO. This may put fewer shares in the public's hands and if my very bullish hopes for Alibaba come true down the road, but not too far down the road, we may see the current YHOO market cap be comprised of the stock values of Alibaba plus Yahoo Japan.
I'm looking to recharge to get back to an overweight on YHOO on stock weakness or at least a period of digestion.
Disclosure: I am long YHOO.
Additional disclosure: Not investment advice. I am not an investment adviser.