Bottom lines. Earnings per share coming at 52 cents a share, compared with the expectation of 30 cents a share. Revenue generated 1. 09 billion for the quarter. That compares to 1. 04 billion on the expectation. It may not be the hottest company on wall street it does move markets. Take a look what it is doing right now. Yahoo trading up nearly 3 in the extended hours session. That may well set the tone for others tomorrow morning. This is after a monster day in the markets. Technology like nasdaq composite best day in 2014 there. Is a lot of buzz but for the next hour were talking about yahoo . What lies ahead for the company . Is alibaba helping or hurting . Is this a doordie moment for ceo marisa mayer. All this and more coming up in the next hour. We have the founder and ceo of morgan creek capital management. Larry fishel man, with the cofounder of dinah Link Communications and very own Charles Payne, host of making g money with Charles Payne. Scott kessler, capital iq. Thanks for all of you being with us. Mark, you are heavy into technology stocks. Do you own yahoo . We do. We absolutely do. What is your reaction tot numbers tonight . We love the beat. Were digging into it like you are over the next hour. We love the relationship they have with alibaba. We love how they changed that late in the process to hold on to a bigger stake. Lots to talk about the relationship with alibaba as well. Maria that is certainly true. I know alibaba is big holding of yours, mark. Larry, the question of alibaba and whether or not this is hurting or helping, lets delve into this. This is big ownership and value alibaba soared. Having said that, does it make it more difficult if the company were to explore a sale . How do you value stakes in yahoo japan and alibaba and come up with a price . It is tough to do that but if you strip away alibaba yahoo is really naked right now. If you look at the growth, well dive into it, it was display ads, only 5 growth yearoveryear which is really anemic. Just because they came in beating the street i think they will be in real trouble here. I think if you take everything apart, there is really not much there. I think what will happen there he will be profittaking on this thing tomorrow. I think it will go back down. I have it at 25 stock in one year. I believe what will happen eventually they get taken over or take under of what they are now, by somebody, whether apple or microsoft. Microsoft, they offered at one point 48 billion. I think they get a lot better price now. Maria no kidding. Jerry yang said no at the time. Charles payne, isnt that the issue though . The fact when you look at the core business, the search business, the content business, its not growing . So she needs those stakes, marisa mayer, and the board, they need those stakes and in fact, the core business is not really moving . Right. Ultimately, that is what the invest something all about, right . That is what investors want to see. This week weve seen a certain theme with names, companies that have certain assets, whether ibm or coke or mcdonalds but the ability to grow your core business, to your point, larry i think he makes the point eloquently, down to less than 5 market share from 7 a year ago. It is hard to understand, outside of these assets that they own, what are you investing in . Maria right. If i bought the stock tomorrow, what am i investing in . If i want to own alibaba, maybe i buy alibaba now that it is public. What am i investing in when i invest in yahoo today . That is absolutely the question. Maria lets get to the Conference Call. Marissa mayer is speaking. Lets listen in for a few minutes. Search communications, digital magazines and video. Our resul on display are mixed, with new investment areas growing triple digits but with legacy pc display more than offsetting that growth. Turning now to search, our search business continues to be strong showing 6 growth yearoveryear on an extac basis. With our search quick driven revenue up 1 , based largely on strong ppc trend and clicks flat yearoveryear. This quarter represents our 11th quarter of search Revenue Growth yearoveryear on a revenue extac basis. Our price per click is up in almost all regions as we continue to find ways to enhance the performance of our search ads through better user interfaces and Higher Quality traffic and as advertisers ultimately find our search ads more valuable. In terms of clicks the story is more regional. We saw strong click growth in the americas for example, where clicks grew 9 yearoveryear. However we saw fewer clicks yearoveryear in asia, in our asiapacific region resulting in flat clicks yearoveryear. Search across both pc and mobile continues to be a highlight where we see a lot of momentum opportunity. Speaking of mobile, im delighted to report to you today that our revenue in mobile is now material. In q3 we saw mobile revenues in excess of 200 million on a gaap basis. Further, we estimate that our gross revenues in mobile will exceed 1. 2 billion in revenue this year. This gaap revenue of more than 700 million in 2014. We have invested deeply in mobile and those investments are paying off. Our mobile revenue more than doubled yearoveryear. Not only are mobile products attracting praise and engagement from users and industry rewards, theyre generating meaningful revenue for yahoo . Fundamentally were moving from a company that makes web pages and monetizes through banner ads to a company that makes mobile apps and monetizing them through native ads. We effected this transformation remarkably quickly with 44 of display ads now being native and our mobile revenue now being material. And as we continue to think about growth, we know that well stay strong here. Mobile remains the minority of our traffic. And as our mobile traffic grows, we anticipate so will the associated revenue given the effectiveness of our mobile native ads. Our display business continues to show some weakness. With revenue down 6 yearoveryear. We would certainly like to see our display business grow, we see some very encouraging trend and anticipate we will see growth in the next year. For instance, the number of ads sold is up 24 yearoveryear. This really represents and increase in our user ingaugement, especially on mobile. Our price per ad declined 24 yearoveryear. What we would like both price per ad and ads sold to be positive, if we were to have one positive one negative, in my view it is always better to have more things to sell and subsequently focus on Building Greater demand, value and an improved pricing strategy. We feel the pricing of our mobile ads in particular will improve over time with better targeting and increased advertiser demand. And while display revenue has been flat to down, the components of our display business have not been. Traditional pc advertising is a sector of advertising and it is in decline across the industry. That decline has been steep here at yahoo , with legacy pc display advertising creating a drag on the business. Maria were listening to marisa mayer on her Conference Call post the earnings news. The earnings news was better than expected, the stock however losing some of its early jump as we are watching it trade in extended hours as this call is going on. Anyone on the panel here, hear anything that strikes you from marisa mayer on the call . I heard her use the word mobile at least seven times. Everyone knows mobile is where its at. You can succeed there that is where you want to succeed. Obviously alluding to the fact maybe that is where theyre going to be. Theyre not there yet. Interesting that small, was at least seven times. I might have miss ad few. Revenue per ad going down, wait until you see earnings on facebook where i believe they will blow it out and revenue per ad is going up. Theyre going opposite trend. Thats why theyre getting wiped out. Maria that is why theyre sees such a difference in market value by the way. Oh, yeah. Maria look at situation of market value, yahoo with market value of 40 billion and facebook is 196 billion. The market is valuing others a lot higher when it comes to this. Let me get to scott kessler, s p capital iq. In terms of quality of these earnings, scott, what can you tell us . The stock traded off as marisa mayer offered her comments because frankly the fundamental outlook is mixed at best. You know what . Contrary to what other panelists as mentioned people are not buying this stock because of fundamentals. If people are doing that they should probably reconsider. We think they should be buying the stock because of tremendous value on the Balance Sheet. If you look, based on todays market prices, yahoo stakes and their cash, were talking about a substantial premium above wh. I mean we agree completely. Maria mark, what do you agree with . You want to buy the stock, not the fundamentals . Yeah. We agree completely. We think value of their stakes on the Balance Sheet, softbank japan and alibaba, are worth upwards of mid 50s, to high 50s. If they could figure out how to avoid taxes. We have a creative way for them to do that but well talk more about that later. No, lets talk about that right now. That is the bottom line. Youve got these two incredible stakes, a stake in yahoo japan and a stake in alibaba. If they were to sell those stakes they would have an enormous tax bill . Well, when we said, when we were together on the alibaba day, we talked about alibaba has this desire to be the first global ecommerce brand. And i think there is a beautiful fit for yahoo to be tucked under alibaba. So, that is how i think they do it in a very tax efficient way. You realize all the stakes. People like us who own yahoo , get paid in full, as opposed to get marked down like the other commentator said is reality. If they try to sell this in the open market well all get less than we have today whereas if we do it in tax efficient way which i think means being bought by somebody, i think it could be a quite interesting acquisition. Maria how about being bought by softbank . That is the. That works too. Maria softbank has the money. We know that. That works too. He has said kind of openly he is not as interested. I think he is pretty interested but, you know, he has a lot of assets on his Balance Sheet that he is trying to wrestle and you know, the Telecommunications Assets an some of the things he is trying to do. So i actually think its a beautiful fit for alibaba for lots of different reasons. Opening up their ecommerce business. I think they could go after ebay as well but i like the fit with yahoo because of embedded assets. Maria is that you own the stock . You think its a takeout target . That might be the reason, yes. Maria let me, cheryl casone, were you trying to jump in there . No. I was just saying one of the things that noticed here were seeing other breaking news crossing. You were talking about online ad market, one of the things she was talk about, Charles Payne picked up on this talking about the fact it is mobile, mobile, they have only. 49 on mobile market. She is on Conference Call putting this out to analysts, theyre putting her bank on that, that is not what they want to hear. They want to hear about her strategy and potential acquisition. She is not giving them what they want yet. Im listening to the call. She is not going there yet but need to. Maria as you mentioned the stock gave up some momentum as she began talking. Joining me with conversation on the telephone fox business wire, john sculley, former ceo of apple. Thanks very much for weighing in here, what i would love to get your take, youre a big investor in a whole host of mow mobility Type Companies and internet spaces. Why do you think search is not as strong here as perhaps at like a google . Why is display ads so troubled . Well, . What we know in the hightech world you go through different eras. The era of display ads is largely on a downtrend because they dont work as well on mobile devices as they did on big screens. Reality were moving more towards a world of Big Data Analytics and that works just fine on mobile devices. So i think that is a troubling issue for yahoo . The thing that is most interesting to me listening to the conversation, maria, is potentially being yahoo being taken out by alibaba, maybe softbank but alibaba is the more interesting one. What they get, what Marissa Mayer, and she has her back up against the wall, but she is a highlyrespected talent. Imagine if alibaba were able to get a relationship with someone as talented and wellconnected to maria, as marisa . She can get on the phone and talk with anybody she wants. She can recruit people. If she were part of alibaba, what they call circle of truth, about 25 alibaba related companies in china, she became one of those and with a footprint in the u. S. , it could be potentially a game changer for her obviously but it could be a really interesting entry point for alibaba into the u. S. Market. Maria but, john, would they do that . There was a moment in time when yahoo wanted to acquire alibaba. Would alibaba, would yahoo turn around and accept alibaba acquiring yahoo . Come on, this is the hightech world. Anything is possible. Maria i guess so. I wouldnt rule that out. It really comes down to jack ma, who has a great relationship apparently with jerry yang and mas son who has a great relationship with jerry yang. Jerry yang will be the kingmaker i think if a deal is ever conducted. I have by the way no inside information on this but jerry yang is a key player as the cofounder of yahoo and marisa is a key talent and she has her back up against the wall. There is no future in display ads and mobile as was pointed out a moment ago is still, they have a very small market share. So i wouldnt rule out thinking about what combination, what is the winwin for alibaba, what is the winwin for yahoo . Maria it is great analysis. I guess the question is, where is the strength at yahoo right now, Charles Payne . With the core business what is her big shot . I think they have to buy a business to have a big shot. What will they do with all the alibaba cash . Listen you have starboard pressuring them not to make anymore acquisitions. You gist spent billion dollars with zero growth but everybody is champing at the bit. Instant growth, instant change of dynamics of your company. Alibaba buying yahoo . I dont know, maybe that happens but theyre sitting on a bunch cash and most shareholders want them to do something smart with it. Maria mark, youre a shareholder. Yes. Maria would you like to see them sell the two stakes even if it involves a huge tax bill . Not, not at all. I clearly prefer them just as john so eloquently described. You take marisas leadership skills and her network and her creativity. She has done some very Creative Things at yahoo theyre not being monetized yet. Theyre long term but i think that is the vision of these other companies. You know jack ma talks in decades. Mas son talks in centuries. When they talk about longterm trend and i think weve become so focused on quarter to quarter numbers we kind of lose track were in a true technological revolution and i think if alibaba can come to the united states, plant a flag, a big orange flag, my hashtag, wear orange on twitter. Right. If they can do that and get a talent like marisa to lead them, i think that also smooths the anticompetition problems that some people have. You snow, china hasnt opened their market to other u. S. Tech companies. They basically want National Champions. And so heres a chance for one of those National Champions to try to skip into the united states. I could see some of the government officials in the u. S. Saying hey, hey, quid pro quo, you have to open up your market. If they come in and save so to speak or really leverage the brand of a yahoo which is iconic american company, one of the best things about the revolution in the 96 to 00 tech wave, i think it could be magic. I really like the opportunity. I cant describe it as well as john did. That was quite eloquent. I will have to watch the tape and write it all down. Maria she is making some news here. She is saying that the company is returning about 3 billion to shareholders. Obviously that is what shareholders want. John skullly, let me ask you, in terms of the best part of this business right now, where is the opportunity for her to capitalize on . Is it the search business or is it really monetizing that advertising business . And content . I dont think its a search business. Theyre a distant player in search and that is not likely to be there, big play. I think it all comes down to talent with mariessa. This is not Silicon Valley anymore. It is not about a Technology Valley anymore. Its a talent valley. She is up at the top of the pyramid in talent. That is one big asset that yahoo has. The other one is its brand. Yahoo is highly recognized brand that people go to every day. Beyond that i dont see much there, obviously some talented people in the company but i think to go out and acquire aol would be stupid because it is taking two broken companies and putting them together. I dont see anyone in the u. S. Wanting to buy yahoo . There is not a lot there because marisa would probably leave. And so i think the best play is the one weve been talking about which is, you know, go for the long ball and see if there is a relationship. My guess jack ma and marisa would probably get along really well. Theyre both really smart, highly ethical, have great reputations. It could be a interesting match. I agree. Maria she just said yahoo has done a great job building its relationship with alibaba and that she continues to grow that relationship. So obviously talking a lot about alibaba and that is the main focus in the extended hour Conference Call. John, what about softbank, could you see softbank acquiring yahoo . Well i never underestimate mas son. Massa when he had a cubicle in softbank in the 1980s. He is clever man. Very capable. Youve seen him on a acquisition spree over the last two months. So it is possible but i dont know whether it is as logical for softbank to own yahoo as it would be for alibaba. Maria bottom line, right down the line, who on this panel thinks yahoo gets acquired by end of the year . Larry, what do you think . I think it does. Maria charles . I dont think so. Maria you dont think it gets acquired by yearend . By yearend . I dont think so. Maria what are you saying . Will they be acquired next year. Short period of t