All eyes on YHOO as the company reports today!
All eyes are on Yahoo! (YHOO) today as investors are hoping for something to cheer about. Yahoo!(YHOO) is expected to report in line with expectation, but the forecast will be the main focus here. How’s the new management search going? How is Panama doing? Where is the business with newspaper outlets going? How’s the partnership with Ebay? These are some of the questions on the minds of investors. Will YHOO come out swinging or will the company set a tone of defeat?
We anticipate YHOO will report inline with its lowered expectation and provide a relatively optimistic forecast for 2007. If the company fails to meet their lower number, the stock will be hit hard! If the company only meet its number with weak guidance, investors will yawn and more sell off will occur. YHOO must give investor something to look forward to in the future; otherwise all faith will be lost. Depending on the tone of management’s outlook, this stock will either be in the 30’s or in the low 20’s tomorrow.
The YHOO report is really the start of the internet sector. This company will set the tone for the other internet companies that are due to report. Ebay will report Wednesday, followed by the big one, Google (GOOG) the following week. If YHOO fails to impress, the entire sector will likely sell off. We have been optimistic about YHOO as we believed the company is on the right track. It is our hope YHOO will be able to provide the market something to look forward to in 2007. Good luck to all you YHOO investors!
Comments
I'm confident in Yahoo when they report today. They can't screw this up because Panama is the only way they could counter Google. They need to step it up for the Yahoo investors. Do or Die
Posted by: Ron Mexico | January 23, 2007 12:38 PM