An Update On Yahoo!

I recently wrote up Yahoo! and explained why I bought the stock. Last night Yahoo CEO Marissa Mayer announced that she was going to return $3 billion to shareholders through a share repurchase. At the current price that amounts to well over 15% of the company. With such a large buyer in the market and a decent quarter it is difficult to see how Yahoo has much downside.  I believe Yahoo has limited downside and should outperform the market in the months ahead.

4 comments:

Andy said...

Did nobody think we were going to get a special dividend out of this cash?  I would rather have a dividend than a buyback.

Tsachy Mishal said...

I believe that the shares are worth much more than the current price so I was hoping for a repurchase.

praguer said...

Apparently Yahoo only spent $200 million on buybacks last quarter. Based on the way the stock has been behaving I expected far more. This buyback will either heat up or continue for a long time. Very promising.

Tsachy Mishal said...

They are likely being much more aggressive now that they have the alibaba Monty