The only reason the stock has gone up is because Yahoo is blowing all the cash from the Alibaba sale on a stock buy back. All the changes made by the new CEO are just theoretical and will take several quarters to materialize assuming they do and wont make much difference in the bottom line. Shorts have been letting the stock run so they can sell short at a higher price. The media (hedge funds) is at maximum brainwash level now telling everyone to buy Yahoo. We have hit the multiyear $19 resistance wall. Everyone who wanted to buy Yahoo has and now the shorts will move in and sell millions of shares and push the stock down. All the fools who bought in the last six weeks will have hard days and decisions to come. Most wont panic until $17s. Yahoo s core business is still worthless. The only thing they had going for them was Alibaba and now its gone. Buyers have run out of gas.
...cover at $20, some at $22, etc.. Will potential shorts "let" it run to $30 and be happy they can then short at a much higher price than now? Once the so called "multi year resistance of $19" is breached (now $19.20) the stock can run up a few points with little overhead resistence. Below there is much recent support from the recent huge volume up moves. YHOO still owns 23% of AG plus the prefereed shares. And 35% of YHOO Japan which is doing very well, though not as amazingly well as AG. And YHOO has many shares yet to buy back. You shorts are getting desperate. Better cover before the $20's, i.e. SOON!
you realize that at some point over the next 4-6 weeks, when jack ma states that alibaba is going public, that the stock will spike 50%, right? If you think FB got a lot of hype - Alibaba will be the largest IPO in years, backed by true ecommerce revenue vs. just advertising model. Yahoo has probably spent 20% of their $3 Billion the buybacks - they'll provide significant support until the low $20s.
They still own ~23% of Alibaba and their year EBIT is $1.32B if that is worthless please give it to me! The technicals are worthless long term as the stock has a "media-bias" positive momentum, if Marissa delivers we see $30's if she don't it will hover in $18-$22.