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At $16, Yahoo! Just Got Interesting: Pros

On Monday Yahoo! stunned the Street by naming Marissa Mayer as its new CEO.

Although interim CEO Ross Levinsohn was thought to be the leading candidate for the job instead, the board went with Mayer, a top Google executive and the mastermind behind the look at feel of the Google search page.

“Clearly this is a trophy hire,” muses Fast Money trader Karen Finerman, president of Metropolitan Capital. “She’s royalty in Silicon Valley.”

And Finerman thinks royalty is exactly what Yahoo! needs by providing the cache and the pedigree Yahoo! lacks.

"Yahoo! is going to again become a technology company. That's the message the board is sending. That's Marissa's sweet spot," adds Spencer Rascoff, Zillow CEO.

“I bought stock in the after-market,” reveals trader Karen Finerman. “Below $16 I think it’s interesting.”

Trader Guy Adami, managing director of stockMONSTER.com, agrees that Yahoo! is a buy. But his trade isn’t a bet on Mayer as much as it is a belief that stock probably won’t trade a lot lower. “The risk reward is favorable to the upside. On the downside I think we’re looking at $14.5 but the upside is probably $19,” he says.

Traders Pete Najarian, co-founder OptionMonster.com is on the other side. “I wouldn’t chase it here. She can’t turn the company around in one quarter,” he says.

“I’m also a seller of any pop,” says Steve Grasso, director of institutional sales trading at Stuart Frankel. "There are better places to put money."

Meanwhile, Mayer is expected to begin her new job on Tuesday, the same day Yahoo! reports earnings.

In a statement she said: "I am honored and delighted to lead Yahoo, one of the internet's premier destinations for more than 700 million users. I look forward to working with the Company's dedicated employees to bring innovative products, content, and personalized experiences to users and advertisers all around the world."


Posted by CNBC's Lee Brodie

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Trader disclosure: On July 16, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Steve Grasso is funds long ABX; Steve Grasso is funds long CUBA; Steve Grasso is funds long GERN; Steve Grasso is funds long HPQ; Steve Grasso is funds long HSPO; Steve Grasso is funds long MU; Steve Grasso is funds long NYX; Steve Grasso is funds long PRST; Steve Grasso is funds long VVUS; Steve Grasso is funds long XRX; Steve Grasso is funds long ZNGA; Steve Grasso is funds long CVH; Steve Grasso is funds long NEM; Steve Grasso is funds long TBT; Steve Grasso is funds long QQQ; Steve Grasso is funds long WLP; Steve Grasso is funds long ANF; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long YHOO; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is shot MDY; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long V CALLS

For Scott Nations
Scott Nations is long JPM

For Amelia Bourdeau
Nothing to disclose

For Todd Hagerman
Sterne, Agee & Leach, Inc. makes a market in the following subject company WFC

For Mike Harris
Campbell is SHORT LME
Campbell is SHORT Aluminum
Campbell is SHORT LME Copper
Campbell is SHORT CME Natural Gas and
Campbell is LONG CME Corn futures.

For Nik Modi
The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in PG
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.: PG
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided.: PG
This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided.: PG
Within the past 12 months, UBS Securities LLC has received compensation from this company/entity: PG


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