Yahoo's stock took a tremendous tumble on Wednesday, collapsing a full twenty-two percent. It marked the largest one day drop and followed the announcement that the company has portponed a piviotal change in its advertising formula. The company, based in Sunnyvale, California, startled Wall Street with the announcement of the unexpected delay. In point of fact, the companies second quarter profits met expectations -- but that did not stave off the great stock drop. Yahoo's shares plummeted to $25.20 on Nasdaq, falling $7.04. In October 2000, the value of Yahoo stock feel 20.9 percent in a single day. The latest drop in the value of Yahoo stock wiped awar over $10 billion in investor or shareholder wealth. Most analysts believe that Yahoo's biggest problem centers on the fact that it still lags behind search engine leader Google Inc. At the present time, Google's market share is more than three times that of Yahoo's. |
