Why Yahoo Shares Lost Only 15%

http://www.businessweek.com/technology/content/may2008/tc2008055_344590.htm?campaign_id=technology_AK
Why Yahoo Shares Lost Only 15%





Summary
After Microsoft walked away from Yahoo, everyone predicted that yahoo’s share will decrease A LOT. At that time, Yahoo’s share diminished a lot. As times goes by Yahoo’s share increasing. The price of Yahoo’s share is getting better and better. Yahoo’s share lost only 15%, now. The analyst Collins Stewart is wondering about that, too. They predict that working with Google is one of the important factors which prop up the yahoo’s stock. As yahoo’s stock price gets better, the CEO, Yang says “ Even though it was done in an environment with a lit of overhang from Microsoft, we demonstrated a lit of good progress, and I feel we are doing better than before in terms of executing.”

My opinion
It can be a good turning point for Yahoo. Even if the stock price fell down little bit, it was a course which yahoo has to pass by one day for independent by itself. Yahoo couldn’t depend on Microsoft forever. They could check out their intrinsic value from this time. They have big intrinsic value which is not showed outside. It was the biggest reason that their share lost only 15%. They made a good brand image through this happening. People would have predicted that Yahoo would fall off. However, this happening show that Yahoo is not the company that is so weak that can’t stank by itself. The most important thing is keeping or upgrading this good image of Yahoo in the future.

Bussinessweek Special Report May 6, 2008, 12:01AM EST

Hof is BusinessWeek's Silicon Valley bureau chief

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