Long Google ($GOOG) & Short Yahoo ($YHOO)

By: ispeculatornew
Date posted: 07.08.2013 (3:00 am) | Write a Comment  (0 Comments)

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Well after a few better picks, my 2013 long & short picks are looking better. It’s far from over of course and I don’t want to talk to fast. I try to not beat myself up when things don’t go as well but then that also means not taking too much pride when things are better! You can always take a look at my results here:

My 2013 Tech Stock Long & Short Trades

This morning, I am opening a new trade on companies that I’ve discussed quite a bit. As you probably know, I’m a big believer in Marissa Mayer and what she is doing at Yahoo. Bringing in a strong leader can make a world of difference (as I discussed last week regarding Zynga). That being said, it might be a bit early for investors to expect a big turnaround in Yahoo’s numbers don’t you think? Before going further here are the numbers on these two companies:

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And the quarterly Y/y revenues growth:

YHOO Revenue Quarterly YoY Growth Chart

YHOO Revenue Quarterly YoY Growth data by YCharts

googLong Google (GOOG)

Google has been doing extremely well in recent months as it continues to work on its world domination plan both through the more likely channels (advertising, mobile, Youtube, etc) but also more high-risk, high reward type of projects (Fiber, self-driving cars, flying internet balloons, etc). I continue to believe in Google as a medium to long term play and think the company is a good buy at these valuations.

GOOG

Next earnings release: July 18

yhoo1Short Yahoo (YHOO)

Yahoo has been doing extremely well in every day since Marissa Mayer took the top job and Yahoo’s asian assets (stakes in Alibaba, Yahoo Japan, etc) have also drive a lot of the recent stock growth. Can the company break through? It’s on the right path with new mobile products (Yahoo Weather, etc), an upgraded Flickr, several promising acquisitions (Tumblr, etc). My main issue though is that I can’t imagine justifying the fact that they both trade at a 16 forward P/E ratio. Especially not given the medium to long term growth differentials.

YHOO

Next earnings release: July 16

Disclaimer: No positions

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