Saxo Bank’s Peter Garnry says Yahoo! has to deliver strong first quarter results and growth in its mobile business to convince investors that it has value to offer independent of its Alibaba stake. 

Yahoo! stock has fallen around 7% year-to-date, which is well below its tech peers. Peter says it's because the company saw a decline in online ad sales last year. With a dismal outlook, Garnry remains negative on the stock. For Yahoo! to become attractive in its own right, it has to prove it can compete with the likes of Facebook in the mobile space. 

But because of the stake in Alibaba, Garnry’s trading strategy for Yahoo! is two-fold: Going short Yahoo! and long Alibaba.