Yahoo! Inc. (NASDAQ: YHOO) is seeing what some might believe unthinkable. The number two and troubled search engine stock is trading lower this morning. Many might argue that the lower trend is normal since the company has lost its way. But if you look at the tape, it looks like a sea of green. Almost everything is trading higher. NASDAQ futures are up almost 70 points pre-market after a 100 point NASDAQ run yesterday.
It is hard to pin this on any single event. The company is testing anew homepage design layout and is proceeding with its new Google searcharrangement. The latest comScore data showed that Yahoo!’s searchshare fell by 0.9% to 19.6% in August with Google having 63% of the market.
S&P has an equity note out, but some of that data is actually positive. For whatever reason traders are selling Yahoo!shares on a day when almost everything else is up. It is very possible that this is just wholesale profit taking sinceshares rose $2 during yesterday’s rally. It is even possible that Yahoo is just overlooked by traders amidst the market rebound. But tradersare generally nervous about companies which trade lower on major rallydays. Google shares are up nearly 5% pre-market.
Yahoo! stock is down over 0.5% at $20.68 on last look on pre-market volume of 70,000 shares.
Jon C. Ogg
September 19, 2008
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