In the aftermarket, the traders pored over results from Yahoo! looking to glean insights about the Internet company as well as the broader tech sector.
Results were in line with analysts' expectations, making the 4th quarter the company's best quarter since it hired Silicon Valley veteran Carol Bartz as chief executive a year ago.
Specifically, Yahoo earned $153 million, or 11 cents per share, in the quarter. That reversed a loss of $303 million in the prior year.
"Our business has positive momentum and we feel good as we head into 2010," Chief Executive Carol Bartz said in a statement. "We're pleased that the midpoint of our Q1 revenue outlook marks the first quarter of year-over-year growth in six quarters."
What’s the trade?
I think display ads will be a monster growth area for Yahoo!, muses Pete Najarian These results tell me the site is much more than a search story. Long-term there should be upside.
Valuations are utterly ridiculous, counters Guy Adami. Looking at straight forward P/E Yahoo! is higher than Google. I’d rather own Google.
I agree with Pete, says Brian Kelly. I think the Yahoo! story is completely misunderstood. Google is a search story but Yahoo! is all about display.
While the earnings are certainly a nice increase from the red ink during the same quarter a year ago, this company has a lot of explaining to do about where Yahoo goes from here, says Jim Goldman.
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