Yahoo’s Marissa Mayer Has Run Out of Time for a Turnaround - The New York Times

All about expectations

"Yahoo’s market capitalization is $33 billion. Its stake in the Chinese Internet firm Alibaba is worth $32 billion alone. Throw in its $9 billion stake in Yahoo Japan and net cash on its books, and the market is valuing the company’s core business at less than zero — even if it has to pay capital gains taxes on its overseas stakes.

Considering the core search and Internet advertising business should throw off more than $800 million of earnings before interest, taxes, depreciation and amortization next year, it is probably worth well over $1 billion to private equity firms.

Yet the market thinks it has negative value. Fetching almost any price at all could make Ms. Mayer into an investor hero."

Yahoo’s Marissa Mayer Has Run Out of Time for a Turnaround - The New York Times