Why YHOO Shares Are Dropping Today

Posted: June 19, 2007 in Uncategorized
Even though the jury is still out whether Jerry Yang can run YHOO… every single person on this planet agree that Semel had to go.
 
Ok, that’s an exaggeration.  But it’s not so far off.  I haven’t read a single report that even slightly lamented Semel’s departure.
 
Normally, this would send the stock higher… as it did in after-hours trading yesterday and early-morning trading this morn.
 
But, don’t forget that YHOO management slipped in an earnings preview into yesterday’s press announcement: 
 
     "Decker said she expects the results to be ‘between the mid-point and the low end of the range’ of expectations." 
 
Timing-wise, this quarter is being set up for a, "do over"… that’s why the stock is dropping.
 
Worse, it runs counter to the, "everything-is-great-and-we’re-so-excited-to-talk-about-it-during-our-upcoming-earnings-call" verbiage Semel was inappropriately bragging about at last week’s shareholder meeting.
 
A double burn.
 
At least that’s the way Goldman and Jefferies probably saw it as they downgraded YHOO this morning.
 
A triple and quadruple burn.
 
Hard for a stock to go up in the face of that stuff.
 
 
P.S.  If YHOO misses by a penny again, betcha Semel’s comp package is responsible for that miss… again.
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