Shares of Yahoo! I believe still have room to grow as they are undervalued today based on current assets and current trading valuation. Shares are currently trading at around 3.8X consensus EBITDA for 2014, and a successful turnaround could drive the valuation on par with other large-cap internet companies that are trading with a valuation ranging from 10-20x.
Everyone loves a turnaround story, and we are witnessing the early signs of one at Yahoo!. The signs are encouraging and could be a prelude to a long awaited turnaround.
Personally, based on my own feel (which goes along with the 10-20x EBITDA inference above) I think that Yahoo will hit $40 before end of 2013 and we will be headed for the Apple, Google, Netflix type of share price in 2014. This is an opportunity to retire! :) There will be ups and downs as the market digests acquisitions and as shorts confuse the matter talking about 'core business' being down. However, when Yahoo Japan and Alibaba plans become clear and IPOs for Alibaba go on the market, all bets are off, double from there. At least.