Wednesday, January 18, 2006

YHOO Takes a dive, GOOG losing the bandwagon

Ok, so here's the deal, Yahoo! did not meet its numbers, in fact it missed by about 14 million dollars. It's stock, which was priced for perfection. Its stock took a dive, it lost over 4 Billion in market capitalization in a couple minutes over 14 million miss. I think this drop is unjustified.

I still also think YHOO will drop even farther. possibly under $34.00, and you know what that means? MON BACK! Yahoo! I think will have some down days but will within the next 3 months climb above $37, possible $38, I wouldn't buy it at anything above $35.50, and that would be minimal, between $34 adn $35 I'd deepen my position and continue buying on weakness.

Google in the meantime got its first 2 downgrades. Goog is also priced for perfection but half the reason yahoo was weak was because google's taking all their business. Goog will still hit $500, and if it continues to drop I may buy a few shares myself. They may have problems with false clickthroughs, but I've known someone that's gotten their account deleted because of themselves clicking on their own account. and they are taking measures to reduce it.

So keep watching Yahoo!, It's becoming a value play.


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