1 Number Yahoo! Stock Investors Should Know Ahead of Earnings

Updated

Yahoo! stock has been rallying ever since rumors of a closer relationship with Apple first surfaced last Tuesday in a report by The Wall Street Journal.

The chatter is that the two companies want to cooperate in mobile. Specifically, Apple is considering using more of Yahoo!'s applications and services on the iPhone as an alternative to Google's popular iOS apps.

If true, it would be exactly what investors want to hear when the company reports earnings on Tuesday. Yahoo! promised to make mobile a bigger part of its overall business in January, citing 200 million active users of its service on mobile devices. Partnering with Apple could increase both its user base and overall usage of its apps.


For its part, Wall Street is expecting Q1 revenue to grow 18.8% to $20.68 billion, resulting in $0.76 of profit per share. The company crushed earnings estimates in each of its last four quarters, according to data supplied by Yahoo! Finance. Yahoo! stock has soared more than 60% over that period.

Would another big beat help Yahoo! stock sustain the rally? Will Marissa Mayer finally be the one to turn this business around? Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova weighs in on these questions in the video below. Please watch and then leave a comment to let us know whether you would buy, sell, or short Yahoo! stock at current prices.

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The article 1 Number Yahoo! Stock Investors Should Know Ahead of Earnings originally appeared on Fool.com.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple and Google at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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