Yahoo! (YHOO) Falls To 52-Week Low

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
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Perhaps it was the figures out of Hitwise showing that Yahoo! (YHOO) is still losing search market share to Google (GOOG). Or, maybe fears that a recession will undercut internet ad grow.

Yahoo! (YHOO) hit a 52-week low today at $21.70. The company’s market cap is now under $30 billion. At the end of last quarter, the firm had over $2.1 billion in cash and short-term investments. It carries its stake in Chinese e-commerce company Alibaba at $1.4 billion. Its piece of Yahoo! Japan is on the books for $476 million. The properties are worth more than that. But, cash plus these interests total about $4 billion.

That leaves Wall St. with an enterprise value of just over $25 billion.

Yahoo!’s revenue run rate is at least $7 billion. At less than four times revenue, the market thinks very little of the company.

Income from operations fell to $150 million last quarter. If that weakens in the first two quarters of 2008, the shares could fall below $15, where they traded in 2003.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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