Yahoo - Is Mayer Backing Up Her Big Talk?

| About: Altaba, Inc. (AABA)
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YHOO earnings tonight after the close.

Is Mayer delivering?

Alibaba is the wild card.

So, Yahoo (YHOO) will report earnings after the close of regular market trading this afternoon. The Street expects the company to report earnings of $0.37/share, on revenues of $1.08 billion for the March quarter. Current estimates for the June quarter are flat QoQ at $0.37/share in earnings, on revenues of $1.98 billion. For the year ending December 31, 2014, current consensus is for earnings of $1.57/share, on revenues of $4.49 billion, up 1.5% over 2013.

YHOO shares are actually down over 10% from when they reported numbers for the December quarter in mid-January, having gotten caught up in the recent 6-week long tech wreck. Most analysts are expecting the company to report in-line numbers organically, and if there is a beat, it will more than likely be due to the slew of acquisitions YHOO has made of late.

What I am looking for is to get a peek at Alibaba's numbers. We could be looking at a big quarter from them given the relatively disappointing and slowing growth when YHOO reported Alibaba's numbers in January. YHOO owns a 24% stake in the company, and could be a big beneficiary when the company goes public, both in terms of value and a boost to its own share price. Recently, analysts have pegged Alibaba's market capitalization in the $200 billion range at IPO, and then maybe higher if the shares pop on debut. This is a crucial look for investors at Alibaba's latest numbers, and could help set the tone for its IPO.

YHOO is well behind FB in terms of mobile revenues, despite having a bit over 405 million active monthly users. FB gets half its revenues from mobile, while YHOO revenues are not even meaningful enough for management to provide a detailed breakdown.

Other areas I will be focusing on are Mayer's grand plans for video and production of shows and mini-series et al to create "sticky content," and thus reap the benefits of high-priced ad dollars. Another issue is acquisition integration and progress. Is there a finite and quantifiable payoff at present or in the near future? Finally, I want to hear from management how the extended partnership with YELP is progressing.

This is a key earnings report for YHOO, given how investors are valuing YHOO's core business for less than zero given its stake in Alibaba and YHOO Japan.

Good luck going into the earnings event.

Disclosure: I am long YHOO, FB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: long yahoo calls