The stock has broken out after the earnings. While one may debate that the earnings were good and bad at the same time, the investors will not complain. There has been a sudden spurt in the stock from $24 to nearly $30 in less than one month. Moving beyond $32 will indicate that the stock intends to move to much higher levels. That may not be so easy, but is surely possible. It has bought a couple of companies after the earnings, so even the acquisition spree continues. In July itself it has bought a few, and the count for Marissa is now around 19 (at the last count). The acquisitions included fantasy sports app startup Bignoggins which has produced Fantasy Monster and Draft Monster. Fantasy sports is a high growth potential area, and many big and small players like Interactive (IACI), Comcast (CMCSA) and MGT Capital Investments (MGT) are increasing investments in the segment. Yahoo acquired Admovate which focuses on mobile advertising technology that enable advertisers to create and deliver personalized offers to consumers through mobile platforms. These numerous acquisitions are part of the strategy to attract users of mobile devices to its platform. Cost cutting is also another area of focus, and resulted in significant decline in Traffic acquisition cost (TAC) in Q2'13. The main challenge is to attract users and increase revenues. There have not been many positives on that front. More and more people are accessing online services on mobile devices. However, the ad rates on the mobile devices are relatively lower, and hence companies face pressure. Google (GOOG)'s earnings also reflected weakening prices of the advertisements due to this. Since this is the main source of revenue, the necessary shift from PC to mobile devices may require some adjustments in the short term before things improve. The challenges will increase.