The force is strong in this one.
Perhaps the upcoming losses announcement will discipline it.
Or perhaps they've got the greenlight from wall street to be the runaway success leader.
I actually only missed out on $6 of the Yahoo
drop and re entered my position on Friday. It has been
quite a profitable trade for me and there is more
downside coming for both YAHOO and ERTS.
money on Yahoo
But what about Yahoo! (YHOO)?
Widely hailed as one of the few "real" Internet stocks,
the portal company has nonetheless slipped 15% to
$125.31 since Tuesday, after another Lehman Brothers
analyst, Holly Becker, raised the specter that its revenue
prospects could be turning gloomy. Perversely, she pointed
out, one of the Net's few profitable companies could
see its revenue growth stall out this summer because
of its heavy dependence on advertising revenue from
less-resolute dot-coms, who are under pressure to slow their
�There are a lot of unsophisticated
marketers out there, but that won't continue
Jupiter Communications analyst
While Amazon's woes are well documented and
built into its stock price already, the doubts suddenly
swirling around Yahoo could create much more short-term
damage. The company obviously boasts enough traffic and
alliances to be formidable in the long term. But the next
several months could force investors to re-evaluate what
makes Yahoo work.
Here's what's going on.
Yahoo, according to its most recent annual report,
relies on short-term advertising contracts for more than
half its sales. Advertising generally makes up about
80% of revenues. Until this year, Yahoo grew amid
dot-coms that spent madly on advertising � according to
Becker, as much as 100% of their yearly budgets � to get
in front of consumers. But those contracts are often
the first casualties when a dot-com scales back on
spending, according to Jupiter Communications analyst
Meanwhile, the businesses that
Yahoo expects to supplant ad revenue are all likely to
stay pretty small until a critical mass of consumers
have high-speed Internet connections in their homes or
pockets. These include live broadcasts of events and
incarnations of the Yahoo site on portable devices. Investors
have to wonder what will become of Yahoo's stock
momentum if any time passes between the peak in
advertising and the surge in commerce.
It's a twist
worthy of an O. Henry story. Becker started covering the
stock Wednesday with a blasphemous Neutral rating,
citing this revenue concern. Even Henry Blodget of
Merrill Lynch, the genteel Internet oracle, expects "a
strong but slightly less robust" second quarter compared
with last year's growth. When Yahoo announces its
results in a few weeks, investors will be listening for
reassurances. But eventually, new growth will have to come from
missed his YHOO gains, since it seemed he covered
one day too soon. Wow, the Amazon sh*t has spread
over to the other sectors as well. So, I wonder if
he's celebrating or crying right now.
day on the market.
he's walking on thin egg shells right now. Nsthil
over the last month found the key to the lock but the
street is changing the lock now!!! His short persistence
will soon lead him over the cliff..one day, Nshil will
keep shorting ERTS as is shoots past 80.
Yes, it's odd, the link of insider buy is there
but the news is gone. Could be a mix-up on the trade
date. ERTS is too smart to have someone even giving an
appearance of trading based on insider info.
institutional buying today. Hmmm... and didn't leave much of
the available shares for the shorts to cover. Wonder
if it was a short squeeze at that
Best of luck.