Yahoo! Inc.,(NASDAQ: YHOO) stock has been falling like a stone the last few days and further this morning after the Wall Street Journal and New York Times reported of upcoming layoffs to re-focus its business to better compete with rival Google. Yahoo currently has over 14,000 employees.
Sources told both papers that layoffs could number hundreds of employees, but further inquiries by ADOTAS has learned that may be an exageration. The drop appears to be reflective of the current economic fears of a recession and the declining confidence in Yahoo’s future ability to compete with Google. The drop is also fueling a lot of interesting speculation in the blog world about how Yahoo is now irrationally undervalued and become a serious acquisition target. Many comments have reflected that during the last downturn Yahoo was one of the sole survivors of an economic recession.
After hitting a one-year high of $34.08 in October, the stock has hit a new one-year low today. This morning, YHOO opened at $19.26. So far today the stock has hit a low of $19.26 and a high of $21.03.
Many are speculating that Microsoft or other less dominant firms like IAC could possibly make a play for Yahoo and that would drive up the stock to more favorable levels. Yahoo claims that the layoffs and other departures by key executives is apart of a needed restructuring that will provide future growth to compete. At the moment the market doesn’t seem interested in the future, only today.