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Yahoo!, Finally Heading in the Right Direction?

Shares of Yahoo! jumped about 3% in extended trade after the company posted first-quarter earnings that were better than analysts expected as online display advertising sales picked up.


By the numbers, Yahoo! reported first-quarter earnings of 17 cents a share, compared with 22 cents a share in the year ago period.

Analysts' forecasts on average were expecting earnings of 16 cents a share on revenue of $1.06 billion, according to data from Thomson Reuters.

However all was not a walk in the park. Although revenue came in at $1.06 billion - it fell 24 percent from a year earlier.

Now the question becomes, will the results help Carol Bartz persuade skeptical investors that the company is headed in the right direction after years of struggle?

How should you trade?

None of the Fast Money traders are typically enthusiastic about Yahoo! stock. Tim Seymour says his takeaway is that the results weren’t as bad as the Street expected, but they weren’t good. "They were less disappointing," he says.

Joe Terranova adds that the question remains, what they will do to monetize the assets in Japan and China?

Guy Adami thinks the better play is Google, however he suggests waiting until it closes above $550.







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Trader disclosure: On April 12, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karabell owns (AAPL); Karabell owns (BIDU); Karabell owns (GOOG); Karabell owns (MRVL); Karabell owns (SINA); Finerman and Finerman's Firm own (AAPL); Finerman and Finerman's Firm own (BP); Finerman owns (C); Finerman and Finerman's Firm own (CVS); Finerman's Firm owns (HPQ); Finerman's Firm is short (IBM) calls; Finerman's Firm owns (JPM), is long (JPM) leaps; Finerman owns (JPM); Finerman and Finerman's firm owns (MSFT); Finerman's firm owns (TGT); Finerman owns (UNG); Finreman owns (USO); Finerman's Firm is short (IWM), (MDY), (SPY); Finerman's Firm is long S&P 500 puts; Finermna's Firm is long Russell 200 Puts; Terranova Owns (VRTS); Terranova Owns (JPM); Terranova Owns (V); Terranova Owns (BX); Terranova Owns (UPL); Terranova Owns (HOC); Terranova Owns (TCK); Terranova Owns (BAX); Terranova Owns (OXY); Terranova Owns (XOM); Terranova Owns (AKAM);

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