Yahoo's earnings prove it's the strongest company in the group, says TIME Wall Street columnist Daniel Kadlec. Will it turn out to be the next Microsoft? "That's a crazy bet to make and yet everybody's making it," Kadlec says. "Yahoo is riding a mania for Internet stocks, just like the mania for biotech in 1991. These stocks have so much room to collapse." Indeed, in announcing only a 2-for-1 split Wednesday (effective in August), Yahoo might be signaling that it knows some bearish days are coming. Notes Kadlec: "A $200 stock price means Yahoo should split 4-for-1 to make it cheaper for small investors. Two-for-1 leaves the price too high for that at $100 -- they're expecting to lose some value, and they're playing it safe." Come August, it's unlikely even a $100 price tag could slow this Wall Street bull down.
NEW YORK: After suffering from a momentary lapse of enthusiasm Wednesday, Internet stocks reignited Thursday following an amazing spate of announcements from Wall Street's darling, Yahoo. The buoyant trio of Net portals -- Yahoo, Excite and Lycos -- was up a combined 20 points by noon, with Yahoo accounting for half that gain, and the tech-heavy NASDAQ was pushing into record territory.