A warning from Yahoo Inc. (NASDAQ:YHOO) Chief Financial Officer, Susan Decker, caused the stock to lose ground as it plunged over 13% at one point. While the drop could be an overreaction, this could confirm investors' fears that technology stocks are a bad place to be this quarter.
Yahoo CFO Decker said the company's third-quarter results might probably be "at the bottom half of the range of financials" the company had previously forecasted, of $1.12 billion to $1.23 billion. Decker also said that Yahoo! is witnessing weakness in auto and financial services advertising.
This comes after a very tepid reaction to Yahoo!'s announced ad blitz of yesterday, intended to revitalize Yahoo!'s brand. More importantly though, when Q2 results were announced, Yahoo! also announced the delay of Project Panama, an effort that should enhance Yahoo's search advertising technology. Yahoo! investors have been grossly concerned about Yahoo!'s ability to adequately compete against Google and the delay, more than the results, caused a drop in Yahoo! share price. This warning could be interpreted as confirming investors' fears.
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Reader Comments (Page 1 of 1)
9-19-2006 @ 12:54PM
Gary E. Sattler said...
...or could it be that technoligically speaking Yahoo has been stalled for quite some time?
No signs of new life here folks. Might want to move some money.
The word for today:
Semiconductor.
Do your home work... there'll be a test at the end of the chapter.
YES, it counts towards your final grade!
Hugs to ALL!
Gary