Reaction to the Yahoo! earnings report is mixed and leaning towards the conservative. Yahoo! is hedging its 2007 numbers right up front. It warns us going into the year that revenues might be less than expected. I get the subtle message that someone over there is holding cards they're not showing yet.

The single best move that Yahoo! made in 2006 was its management shake up. I liked that when it happened. It also split corporate structure into three divisions. I found that appropriate and timely. It was at that point that I moved from Yahoo! disappointment into a wait and see attitude. Now, based on subtle things I'm seeing and its very cautious 2007 projections, I see a Yahoo! which is finally under way again. I still haven't developed an opinion on the Yahoo! eBay (NASDAQ:EBAY) connection. Given my complete disgust with eBay, I've just tried to ignore Yahoo!'s involvement with it.

If I held Yahoo! shares I would be encouraged by its earnings report, not disappointed when looking ahead. I'm seeing conservative optimism from a struggling powerhouse. I get the message that Yahoo! is getting its feet under it again. If Yahoo! can keep diverging from its attitude of trying to keep up with Google Inc. (NASDAQ:GOOG) and continue to cut its own path, 2007 could be a very exciting year in advertising, marketing and Internet. I don't hold a position in Yahoo! but it's finally taken me to the point where if I did, I'd be comfortable. Thank you Yahoo!, your conservative approach to your '07 projections has finally pushed me off the fence.