Yahoo shares dropped to their lowest level in five years on Thursday, plummeting 8 percent to $12.65 amid continuing economic chaos.
It was Yahoo's lowest level since the summer of 2003, when the company was recovering from the bursting of the Internet bubble.
Yahoo is facing numerous challenges as it tries to regain investor confidence after an acquisition deal with Microsoft earlier this year fell through. Microsoft made an unsolicited bid for Yahoo valued at $31 a share.
Yahoo's premium display business is being affected by a slow-down by advertisers such as financial companies and automakers, and more conservative spending among online advertising customers.
Marketwatch reported that in a note to clients on Thursday, Collins Stewart analyst Sandeep Aggarwal wrote the he expects Yahoo's quarterly profit and sales to fall short of consensus estimates, because of "economic headwinds and turmoil in the financial markets, resulting in weaker display ad revenues."
Meanwhile Yahoo's search advertising deal with Google has been put on hold while the Justice Department reviews the agreement for possible antitrust violations.
Yahoo will report its fiscal third-quarter results on October 21.
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Deals and more deals for profit
Wonder what will happen with the microsoft deal ?
Perhaps it was fortious for microsoft - now they may get a better deal that a lot of yahoo shareholders will insist go through this time
cash is a hard thing for many to come by - with their brokers calling up for margin calls
The interesting thing will be if the companies can mesh and what the final bottom line profit tallies will be
Off to wealth and riches or at least pay bills
Yahoo Stock
They should have sold to Microsoft when they had the chance. I think Google will continue to dominate and Yahoo will continue to fall. Yahoo focuses on short term profit while Google focuses on the long term user experience. I don't know how many times I've read an article on Yahoo when a survey button or ad flies across the screen. This drives users away.
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