Yahoo: Zero margin for error

Wall Street has given Yahoo boss Terry Semel the benefit of the doubt. The Internet giant’s shares have surged 40% since bottoming out last fall on delays in rolling out its new advertising system, called Panama. The stock’s price-to-earnings multiple today stands a stunning 63% higher than Google’s. That could make any hint of bad news when Yahoo reports earnings on Tuesday potentially catastrophic for its investors. But after living in Google’s shadow in the online advertising business, Yahoo...