Yahoo! crashes to two year low
Today Yahoo fell more than 22% in the days trading to $25.20 its lowest value for two years. Against Google Yahoo has fared well over the last year. So today’s drop is a
Wall Street investors worry that, despite previous assertions – Yahoo, the Internet’s most trafficked website, will continue to lag in online advertising well behind engine leader Google.
JP Morgan Securities analyst Imran Khan downgraded Yahoo’s stock to "neutral" and expressed doubts whether the company will even be able up to live up to its financial projections for the rest of the year. He also believes Yahoo is destined to fall further behind in its technology race with Google, which will release its second-quarter results Thursday.
According to MSN – The turmoil at Yahoo sparked its biggest one-day stock price fall since it began trading 10 years ago. It also provoked debate among stock analysts over whether other leading Internet names were in similar peril, in particular, whether Google Inc.’s habit of outperforming forecasts could continue when it reports results on Thursday.
Some analysts argued that the whole web search market may be slowing down in general.
Revenue for the second quarter totaled $1.58 billion, a 26% improvement from $1.25 billion last year. Subtracting commissions Yahoo paid to other websites in its advertising network, revenue stood at $1.12 billion, up 28%.
Google’s revenue is expected to rise by more than 73 percent in the second quarter from the same quarter a year earlier, according to Reuters Estimates.
At the same time over at Piper Jaffray, Safa Rashtchy is maintaining his ‘outperform’ rating on Yahoo’s stock, although he lowered his 12-month target for the shares from $42 to $36.
In a conference call today Yahoo’s CFO, Sue Decker stated that – we absolutely judge ourselves against google.
Google numbers are expected to be up, but this could be the beginning of a decline in growth in the search engine market. The market may need another ‘disjoint’ to spure on the next ‘big thing’.
As ever all of us should be wary and remember the term internet time’.