A few days ago, I bought a few hundred shares of Yahoo! Why?

Marissa Mayer.

Some people think I’m crazy. Here’s my rationale:

  • People have ben resigning at Yahoo!, meaning things are changing… My thoughts: awesome.
  • Analysts don’t think this stock is undervalued right now… I do… because look at Facebook… They are at about $27 today with about 1.2 billion shares outstanding, around about the same as Yahoo… Except Facebook is at over 500x earnings as opposed to Yahoo which is at about 5.8x earnings… In a relative sense, I’m liking Yahoo’s future prospects.
  • Yahoo is enhancing user experience, and ad revenue has been rising… Thanks, Marissa.
  • Yes, Yahoo might drop a few points in the next few days (maybe not), but I don’t think it’s going to sink lower than $18/share in the next 6 months becuase I’m expecting strong earnings and more people realizing Marissa Mayer is a force to be reckoned with.
  • I think Marissa has something big up her sleeves, obviously.
  • Marissa Mayer, Marissa Mayer, Marissa Mayer… watch this lady.