Last quarter, I wrote a very controversial article after both of these companies missed earnings. I argued that Intel's had a chance to recover its business in 2007 and Yahoo! really didn't.
I expected Intel to beat this quarter, and they did, showing real growth over the last quarter. Their top line was well above the companies own estimates and they raised guidance for the next quarter. More importantly, there numbers show a clear improvement in margins from last quarter and they are back above 50 percent. They even guided up to 52% for the full year. In short, Intel is moving on all cylinders.
Yahoo! really didn't blow out any numbers - they probably are just blowing out the shorts today. There business remains under real pressure from Google, and their company trades at an unwarranted valuation to Google. Don't count on Yahoo suddenly figuring out how to compete - just use this opportunity to sell the stock.
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