The bottom line for Yahoo is that it still needs to figure out what it wants to be. Until it does, revenue growth may be sluggish at best. Analysts are forecasting a sales increase of only 2% this year and 3% in 2013.
Profits are likely to increase at a faster clip, but cost-cutting has been the story at Yahoo for a long time. While the stock may look cheap, trading at only about 16 times 2012 earnings estimates, it actually is more expensive than other tech titans that don't have all of Yahoo's baggage, such as Apple, Google and Yahoo search partner Microsoft.
Yahoo is a company that is now on its seventh CEO since 2001. Yahoo has been a turnaround story for a long time. You can forgive analysts and investors if they remain skeptical.
"Yes, this is finally some good news for Yahoo. But I'm not ready to wear my purple shirt to celebrate just yet," Pyykkonen said, referring to Yahoo's trademark hue.
Best of StockTwits: Traders "poke" fun at Morgan Stanley for its role in the Facebook fiasco. Andy Warhol's favorite company gets kicked by investors. And ... surprise! ... more bad news about the housing market.
AronPinson: Has $MS learned nothing from $JPM??? When other market participants know what you're doing... You're screwed! $FB
conorsen: When all is said or done $MS et al will have probably paid Facebook for the privilege of underwriting the IPO. Nice trade, Zuck.
It was comical watching Facebook flirt with the $38 offering price Friday but never fall below it. And you do have to wonder if any good will Facebook generated from keeping underwriting fees down will be overshadowed by the fact that the stock is getting killed Monday.
BrianSozzi: The problem with doing the yield grab on some consumer staples: "cost inflation, increased promotional spending and unfavorable mix." $CPB
At first blush, Campbell Soup would seem to be a great stock for uncertain times. You have to eat, right? And soup is cheap. Then there's that tasty dividend.
But the stock was down 4% on weak earnings. Commodity prices and high marketing expenses often have a way of turning what looks like a great "safe haven" investment into the culinary equivalent, of well, Facebook.
ReformedBroker: $LOW didn't have anything good to say re: housing market/demand. $HD didn't either last week.
That is a worrisome sign. Lowe's and Home Depot both had decent quarters but investors were spooked by guidance. It goes without saying that the only way to sustained improvement in the job market and overall economy is through a healthier housing market.
If the outlooks from the home improvement retailers are to be believed, there hasn't been nearly as much improvement in housing as we need.
The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, and Abbott Laboratories, La Monica does not own positions in any individual stocks.