most models are based on a favorable tax outcome so unfortunately, all estimates will be majorly impacted by this development. i think most on the street will be shocked by this situation as most thought that Mayer's ties to Obama would help the company seamlessly bypass a major tax event. You're looking at cutting the value of the holding by 40% - it's a major haircut and one that will probably run the stock back down to the mid 20s, if BABA continues to suck wind. If Baba goes up, I'm sure YHOO will recover.
The challenge is that Mayer, for all the good that she's done and she's found a way to reignite the company, seems a bit too high on her high horse and that's her reputation . . . she's a tech geek with a pretty face and designer clothes and that, that my friends is a dangerous combination.
I have a standing sell limit order at $77 so look forward to getting filled! Glad i entered this order last night!!
Be careful very careful at these levels . . . BABA value is going to drop in an astounding fall. As China goes, so does BABA. YHOO only has BABA to rely on, No one wants core.
and equal weight. The wall street games never ended. 2000 IPO Crash and pay to play (ie give a good rating, get investment banking work) still exists!
It's been parabolic for 2 years and broke all major support earlier today. Still heavy sell orders need to get filled, since the news was spilled towards end of day. The issue is, when you have a stock that is solely tied to one event and doesnt have the foundational support and earnings and revenue growth, this is the fundamental risk. Even after a 7% sell off, the stock is sell valued at a whopping $39 BILLION!. THINK, is YAHOO really worth $39 BILLION? It needs to correct back to a $30 BIllion market cap, more in line and you're looking at a run back down to $30.
Strong support and held the support line of 15.50 on close. When there's blood in the streets, you buy. You sell stock and others while the market is euphoric. Japan was the kicker to give this one last capitulation. Massive buys needed by December deadline. SLV will fill the gap back to $17.50 soon.
IF it goes to $32.50 and holds, i'll be a buyer. This has been an easy play. If it breaks $32.50, it could get extremely ugly as the support is just not there and it could collapse to the $20s. We've seen this story before, especially in such a volatile market where the nasdaq is getting beat up. I'm not predicting anything and for your sake, i hope it holds current levels or goes up. But as a trader, i watch this and several issues waiting for the right time to enter . ..or exit.
agree. i was a 3 year holder since $14. sold out at $41.50 on the news. risky given lack of faith in mayer, earnings, the news is out factor and the overall markets going crazy. good luck but it could be a tough few weeks.
Take it from someone who held it for nearly 3 years, endured spikes up and down but ultimately made significant profit. The hype post ipo will fade. Yahoo will need to report earnings. If their earnings are good (essentially they had 1 qtr in the past 5 that the market rallied the stock on), stock goes up, if they are in line or bad, stock will get pummeled and retest $32. Yahoo has always has investor activism, but this hasnt always resulted in an increase in share price. During the Loeb days, the stock got hammered post bad earnings with Loeb holding a huge stake . . .and we all recall years ago with Einhorn and Icahn - many of which actually lost money on YHOO trades.
This stock has run from 11 to 44 and most recently from 32 to 44 and now hovers around $40. Be cautious when trading this and take your profits and run if there is ANY disappointing news, the run down will be way more severe than the rally up.. . .
from 14 . . . to $41.50. Done. mid-six figure profit. My advice - be cautious at these levels.
holder since Sept 2011 . . .check out the 5 day, 10 day and 1 month charts . . .very bullish. typically this thing flops all over the pace but it's consolidating nicely on decent volume.