Yahoo! (NASDAQ-YHOO) almost joined the ranks of the 52-week low club today. It actually did hit new 52-week lows, although it looks like Yahoo! stock isn’t going to actually close down at 52-week lows. It may just have the bottom fishers in there to thank, and a 190 point rise in the DJIA probably didn’t hurt it today. Its shares are still in negative territory with less than 30 minutes to the close.
It seems that despite Panama and despite new management that shareholders just aren’t going to give the company a pass for a few quarters. Jerry Yang stepped back in and the company hasn’t had a good run at all since then. The prior 52-week low was $22.65 intraday and shares reached as low as $22.44 earlier today before recovering.
Google (NASDAQ:GOOG) trades at a discount on forward numbers compared to Yahoo!. Yahoo! is also only cheap if you consider that its shares traded north of $40.00 about 18-months ago. So the stock appears to be on sale when the underlying business isn’t. Yang has his work cut out for him even more now Chief Yahoo! and it’s a wonder that no one has said "Could we please get Semel back?".
Jon C. Ogg
August 6, 2007
Jon Ogg can be reached at firstname.lastname@example.org; he does not own securities in the companies he covers.