Yea!! Yahoo Did It – They Actually Drove Their Stock Price Down!!

Implications: I wanted to release this at the beginning of September but I was too busy watching the market crater. But now I can’t hold back my opinion.  In this time of bank bailouts and talks of executive compensation I am frankly stunned investors have forgotten the Microsoft debacle. Oh my gosh, Yahoo did the unthinkable they played chicken with Microsoft and lost.  

Analysis: As of this writing Yahoo’s stock is about $18.90 per share.  This is well below the $33 price that Microsoft Corp. offered for Yahoo, the company's board.

Someone tell me how Yahoo’s executive team can still have a job when real hardworking and competent managers in the space can lose their jobs over something like poor performing stock.

I have said this over and over.  What Yahoo did to its shareholders is unconscionable.  Microsoft may need Yahoo but who do you think will outlast the other?  The reality, the recession works in Microsoft’s favor.  No investor will expect Microsoft to brashly rush into a new segment of the Internet space without spending the time to planning an effort.  In other words, the recession is a great smoke screen for Microsoft when it tells investors it may need more time to make an aggressive entry into the new media space given the recession.

Analysts are hoping the stock will stabilize and be ready for a bounceback.  They have to say that otherwise there will be a wholesale sell off of the stock with a possibility of the sell off spinning out of control.  Of course the informed investor and current Yahoo shareholders need to start asking questions of the Yahoo management.  Enough is enough.

Yahoo shareholders have been kicked around by the executives they have empowered.  It is time to clean house.

Yahoo is currently trying to excite the market with new ad services.  But you know; it’s a too little too late.  Is Wall Street so desperate for good news that the Yahoo-Microsoft mess has been swept under the rug?

Yes you can buy low for the future but frankly why are current investors rewarding Yahoo’s executives with continued employment?