Nothing is so important to the long-term Yahoo! (NASDAQ:YHOO) earnings story as mobile apps, Fool contributor Tim Beyers says in the following video.
How do we know? CEO Marissa Mayer makes it a point to highlight the company's mobile numbers every quarter. In Q4, roughly 400 million were using Yahoo! mobile apps monthly. In Q1, that number rose to 430 million.
In a call with analysts, Mayer described Yahoo! as a "mobile first" company with four areas of emphasis across its entire business: search, communications, digital magazines, and video, with Flickr and Tumblr backstopping each effort.
But it's mobile that Mayer sees driving the business. Total display ads sold rose 7% in the first quarter, and according to Mayer, success with mobile is partially responsible for the gain. She cited higher traffic traffic and revenue -- as well as user gains -- as evidence of good returns on mobile investments.
So while it's tempting to think of Yahoo! stock in terms of the potential gains from its 24% stake in Alibaba, strategically Mayer has bigger aims. She wants Yahoo! to be users' go-to for news and other content while on the go. By the numbers, investors have every reason to believe that she can.
Now it's your turn to weigh in. What did you think of Yahoo!'s earnings report? Please watch the video to get the full story and then leave a comment to let us know your take, including whether you would buy, sell, or short Yahoo! stock at current prices.
Three companies with Alibaba-like potential
Give me five minutes and I'll show why it's worth your while to become an investor. In a new special report, our analysts highlight three stocks with billion-dollar potential, and which are poised to reward those who buy shares before the crowd gets in. To get their names, and a FREE copy of our analysts' research, click here now.
Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.
The Motley Fool recommends Yahoo! Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.