Yahoo has some splainin’ to do – a shareholder sell-off sent technology and internet exchange traded funds (ETFs) lower this morning.
Shares for Yahoo (YHOO) fell more than 16% midday after Microsoft (MSFT) took back its offer of $47.5 billion after months of back-and-forth, reports Michael Liedtke for the Associated Press. CEO Jerry Yang may only have a few months to convince Wall Street that refusing the takeover bid was a wise move. If he doesn’t, analysts are predicting he could be replaced or forced to accept another, lower, offer.
The Internet HOLDRs (HHH) took an especially huge hit in early trading, down nearly 4%. Yahoo is the fund’s largest holding, with 27.1% of the assets. The fund had been down as much as 6.8% earlier in the day, reports Tomi Kilgore for Thomson Financial.
Among the other technology ETFs trading lower today are:
- Morgan Stanley Technology (MTK): Yahoo is 4%; Microsoft is 2.7%; down 5.1% year-to-date
- Vanguard Information Technology (VGT): Microsoft is 11.3%; Yahoo is 1.1%; down 6.6% year-to-date
- iShares Dow Jones US Technology (IYW): Microsoft is 12.4%; Yahoo is 1.7%; down 7% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.