Shares of Yahoo (YHOO) are rallying in the pre-market,
despite the internet giant posting a net loss of $303 million, or 22 cents a
share in the period ended in December, compared to a profit of $206 million, or
15 cents a share, in the same period a year earlier.
The company has a new CEO and will be looking to figure out
the best plan of action regarding its search business, which Microsoft (MSFT)
may still have a good interest in, if there is an initiative to re-open talks
Looking ahead, the company sees revenue to likely be in the
$1.1-1.26 billion range. The consensus estimates are for revenue of $1.29 billion.
The Bottom Line
Shares of Yahoo lost nearly 50% of their value in 2008. The stock has long-term
technical support in the $4.50-5.00 price area. If the shares can begin to
strengthen, we see overhead resistance in the $14-18 area. We do not currently rate
this non-dividend paying stock, but would prefer Google (GOOG) over Yahoo at
this current time.
Yahoo (YHOO) does not currently pay a dividend.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well
as a detailed explanation of our ratings