I’m feeling kind of smart today after feeling stupid *yesterday*. I had doubled my Yahoo stake before the earnings call, wrongly thinking that a good report was in store. However just fair earnings and poor guidance knocked the stock back a few dollars the next day. But it’s surging today as Microsoft has offered 44.6 billion for Yahoo, effectively making it worth a lot more than yesterday.
Perhaps the price hit after earnings drove Yahoo to some sort of strike point for Microsoft. At CES I think I may have been right to suggest there were high level meetings between Gates and Yang regarding a Microsoft Yahoo Merger , clearly MS must have been thinking about this for some time. Rumors have been swirling for over a year.