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Investors unconvinced by Yahoo predictions

Yahoo's ballyhooed predictions of reaching $40 per share by 2010 left investors skeptical and desirous of further negotiations with Microsoft.

Changes in the value of Microsoft's stock now value its $31 per share offer for Yahoo at roughly $29.50, but Yahoo's shareholders may think negotiating up from that offers better prospects than another set of Yahoo promises.

Kara Swisher at All Things D has gathered opinions from investors and sources about Yahoo's lofty financial goals over the next two years. Predicting the dizzying heights of $40 per share hasn't gained the love of investors who are ready to see talks move on with Microsoft:

While the group (of Yahoo executives) met with polite audiences, most investors I talked to were unenthusiastic about the plan and dubious that Yahoo’s blue-sky hopes would come through. “I think we wanted to give Jerry a hearing, but mostly to save face,” said one investor, in a sentiment that was typical.

Other than putting off its shareholder meeting to avoid being forced into a quick decision, Yahoo has not managed to accomplish anything of substance. Potential suitors like News Corp and AOL appear to have backed away from any potential plans to partner with Yahoo.

Yahoo already has a number of lawsuits against it for delaying talks with Microsoft. Continued delays could prompt their big institutional investors to follow the actions of smaller plaintiffs and complain to the courts as well.