I am both long and short on this stock the exact same amount of shares. I originaly purchased long at a higher level then shorted in frustration to hedge my losses, now I have to figure out what to do tomorrow. Take off my long position or short position? I don't know much about Yahoo except that Microsoft has been playing games with it for a while. I read on here earlier that Yahoo has little or no debt! So why is it in souch trouble, someone please give me the lowdown, I don't have time to do a bunch of research right now.. thankyou.
The "trouble" is YHOO's high market cap relative to the company's sales revenues and earnings. Considering Yahoo's current business trend, and near term business prospects, a reasonable valuation for the stock is about $5 per share, less than half of today's stock price. This is the "trouble".
No one suggests Yahoo is going bankrupt, instead the "trouble" is in valuing a company with declining business results.