Yahoo! Inc. (NDAQ:YHOO) shares are up sharply after the company announced a blowout quarter in its most recent 8-K filing with the SEC. The search giant surprised the market with a 12 percent jump in revenues on a 37 percent earnings surprise. The market loved the numbers as shares rose over eight percent in pre-market hours and continue to hold gains.

Many analysts saw the earnings numbers as a pleasant surprise but insist that Yahoo only delivered a solid quarter because expectations were so low. Analysts also question CEO Jerry Yang's strategy going forward because he hasn't proposed any new groundbreaking changes that would be a base for a robust turnaround. Instead, the chief executive simply reinforced his old adage to make Yahoo a premier destination website.

Yahoo has made several changes, however, aimed at improving its existing businesses. First, the company improved upon its email and search engine earlier this month. Secondly, the company acquired Right Media and BlueLithium in order to boost its advertising platform and expand its offerings. In the end, Yahoo's lack of technological ambition has kept it in the catch-up game with Google, who continues to dominate the market.

Overall, Jerry Yang's new strategy will likely help the company improve its existing offerings but it may take more to orchestrate a meaningful comeback and steal market share back from Google. Despite the company's recent acquisitions and strategic moves, investors are still waiting for improvements on the bottom line. However, YHOO is definitely a stock worth watching!

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