Yahoo Closes At $13.76. What A Train Wreck.

http://www.techcrunch.com/2008/10/08/yahoo-closes-at-1376-what-a-train-wreck/

by jasonlbaptiste • 18 years ago

16 27 18 years ago

LPTS• 18 years ago

Maybe Jerry Yang should give Steve Ballmer a call and see if he's still game to buy Yahoo at 43 a share (or whatever it was).

kirse2• 18 years ago

I hate how TechCrunch seems to idolize Google stock, as if its not going to be hovering at around $40-$50 in the next 18-24 months.

The market in general is going to be coughing up some blood for awhile, and I'm going to bookmark this post and send it to Mr. Arrington when I'm proven right. I remember owning Yahoo at $300+ (which split) back during its high-flying days, and Google will be no different with its heavy reliance on advertising for revenue.

SwellJoe5• 18 years ago

I'm curious why you believe GOOG will be trading at around 3 times earnings? That just doesn't even make sense to me, and I'm having a hard time imagining anything short of total economic collapse that could lead to such an unlikely scenario.

While GOOG may not be bottomed out at ~$340 (I bought a few shares at $349, and am pretty happy with the price...and if it keeps dropping, I'll buy more, once it starts climbing again), I just don't see how you can possibly imagine it's a $40-$50 stock. Terrible companies trade at better than three times earnings, average companies trade at 10 times earning, and I don't think anyone is going to accuse Google of being a terrible, or even an average company. Google would pretty much have to start bleeding money to trade as low you're suggesting is inevitable.

systems• 18 years ago

why are you happy for buying google at $349, you bought at a high price, the price dropped ~ $10, you lost $10 a share ... what is happy about this story!

really i want to understand your point of view

iamelgringo• 18 years ago

I don't know. The hackers that I've recently talked to that work at Yahoo seem pretty happy with the place.

There might be more pink slips and cost cutting in the future. But they are coming out with some pretty cool open source technology and getting some decent street cred with developers: Hadoop, YUI, BOSS, Web analytics. They're seen as "getting" open source in the developer community.

Maybe it's too late for them, but I have the feeling that the hackers as Yahoo, under Jerry Yang are going to start putting out cool new products again, and eventually the stock price is going to reflect that.

davidw• 18 years ago

You're completely right about the cool open source stuff. How do they connect that with making money, though?

helveticaman• 18 years ago

With the original CEO at the helm, they might have the same success Apple had.

ScottWhigham• 18 years ago

I don't know. The hackers that I've recently talked to that work at Yahoo seem pretty happy with the place.

If the stock drops another 50% in the next six months like it did over the previous six months, I'm pretty sure those hackers won't be happy nor will they likely be working there.

maxklein3• 18 years ago

What does stock value have to do with company profits or income? Why would a profitable company fire employees because it's stock value is low?

Do you actually understand the concept of stock and what is happening when people trade stock on the market?

asdf333• 18 years ago

I think you may be completely right about hacker cred.

However, this is a business and the bottom line is Yahoo is frankly struggling and has no business focus. This is essentially the executive's fault.

I remember watching both Yang and predecessor Semel on Charlie Rose and I was absolutely shocked at how little idea they had about where the business had to go.

They are making some progress towards narrowing the business focus, but they need to replace Yang.

Previously I thought Decker had to be put in charge, but she is already de-facto CEO. As time passes, I am more and more uncertain about her ability to pull Yahoo out of this.

cbrinker• 18 years ago

Wow? Seen Bear Stearns lately?

SwellJoe5• 18 years ago

I see prices like that for the most popular website on the Internet, and I'm sad that I don't have any more cash in my trading account. (I already bought GOOG with all that I had handy.)

maxklein3• 18 years ago

Seriously, is Michael Arrington being paid to trash Yahoo? Yahoo stock price may be low, but how does that affect the company itself? TechCrunch posts news like it's trying to force Yahoo to collapse.

And seriously who wants a Microsoft Yahoo merger apart from Michael Arrington? Should so much power be concentrated?

It's STOCK! The company already made the money from the stock sale, whatever price outside traders want to bet on is not relevant. I think I'll be buying some Yahoo stock actually.

TweedHeads• 18 years ago

He lost all credibility long time ago.

utnick• 18 years ago

Well I would assume it affects the company because employees have no reason to stay until their stock options vest because their options are worthless now.

Also, the executives of a company care about the stock price, because if it goes too low, the investors will call for their heads. This pressure can make the executives do things like reduce expenditures and headcounts.

timtrueman• 18 years ago

What about Yahoo!'s stake in Alibaba and Yahoo! Japan?

rgrieselhuber• 18 years ago

And yet their P/E is still at 19. If Yahoo really sucked that bad, wouldn't they be cheaper?

Prrometheus• 18 years ago

They can always increase that ratio by lowering their earnings.

Yahoo Closes At $13.76. What A Train Wreck.

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