On Jan 29, Alibaba Group Holding, in which Yahoo holds a 15% stake, announced its fourth-quarter fiscal 2015 financial results. Alibaba’s fourth quarter revenues missed analysts’ expectations, which in turn impacted Yahoo's shares.
This slump shouldn’t be too much of a surprise to investors, as the Internet Services provider has seen 1 negative revision in the past few weeks and its current year earnings consensus has moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.
YHOO currently has a Zacks Rank #4 (Sell).
A better-ranked stock in the Internet Services industry is Sohu.com Inc. (SOHU) which holds a Zacks Rank #1 (Strong Buy).
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