Yahoo Shares Reach Five-Year Low
Yahoo shares dropped to their lowest level in five years on Thursday, plummeting 8 percent to $12.65 amid continuing economic chaos. It was Yahoo’s lowest level since the summer of 2003, when the company was recovering from the bursting of the Internet bubble.
Yahoo!
Yahoo is facing numerous challenges as it tries to regain investor confidence after an acquisition deal with Microsoft earlier this year fell through. Microsoft made an unsolicited bid for Yahoo valued at $31 a share.
Yahoo’s premium display business is being affected by a slow-down by advertisers such as financial companies and automakers, and more conservative spending among online advertising customers.
Marketwatch reported that in a note to clients on Thursday, Collins Stewart analyst Sandeep Aggarwal wrote the he expects Yahoo’s quarterly profit and sales to fall short of consensus estimates, because of “economic headwinds and turmoil in the financial markets, resulting in weaker display ad revenues.”
Meanwhile Yahoo’s search advertising deal with Google has been put on hold while the Justice Department reviews the agreement for possible antitrust violations.
- Yahoo will report its fiscal third-quarter results on October 21. (Web Pro News)
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