To compare, first adjust share price for shares outstanding. Yahoo has 3x as many, thus Goog would trade at $280. That moves its EPS down to $11 per share from $33 per share. IF Yahoo was equal to only 1/4 of Google (and the EPS suggests it should be more like 30%), then Yahoo could be trading at $280 x 30% or $84 per share. The moment Marissa shows revenue growth even without the profits catching up initially, Yahoo will take off. It is a matter of time and Yahoo will make a very significant run. Those catching this ride are buying their tickets today.
Hah??? First off I am long 500 July 28's. I would love for this stock to take off. But to compare it to Google like that is ludicrous!! Estimated for Google revenue are about 72 billion next year growing from 60 billion this year. So basically they are increasing revenue at 2 1/2 time each year what Yahoo even brings in as total revenue. So actually looking at the revenue compared to each other it makes me think Google is the cheaper of the two. Now granted if Yahoo can make these acquisitions work and start increasing revenue more substantially then maybe I may see your at least part of your point but right now I think your dreaming a little bit too much and that is what worries me on this stock. Too many treating it like a lottery ticket and things like that don't usually pan out. I like its technical pattern here and am looking for a break to 29's in the the next few weeks barring another market pullback.