Technology stocks and exchange traded funds (ETFs) didn’t exactly shout "YAHOO!" when news of a failed deal between Yahoo and Microsoft (MSFT) came through this afternoon.
Anupreeta Das and Daisuke Wakabayashi for Reuters report that Microsoft finally said it was no longer interested in buying the company.
But now the rumor is that Yahoo (YHOO) is getting ready for a search deal with Google (GOOG) instead. The news sent Yahoo’s shares tumbling, dragging down the Internet HOLDRs (HHH) to their lowest price since March 17 midday. Yahoo is 27.1% of the fund.
Other funds were slightly mixed, including:
- iShares Dow Jones US Technology (IYW): down 8.7% year-to-date; Microsoft is 12.4%; Google is 5.4%, Yahoo is 1.7%
- Vanguard Information Technology (VGT): down 8.3% year-to-date; Microsoft is 11.3%; Google is 6.1%
- Morgan Stanley Technology (MTK): down 6% year-to-date; Yahoo is 4%
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.