Henry Blodget Stock Quotations

Since one of these possibilities would be negative for the stock (earnings miss), two would be neutral, positive, or negative (acquisition, management change), and one would probably be positive (takeout / strategic investment), it is hard to know what the impact on the stock might be.

Near-term, in a market environment in which investors are fleeing to quality, its stock could continue to do well. Our analysis, however, suggests that the company's long-term earnings growth is likely to be slower than the 15 percent to 20 percent consensus.

We continue to believe Yahoo! will make a good long-term investment. As a result of the challenging advertising environment, however, we believe the stock could see significant downside in the next three to six months.

We also believe that some analysts are projecting that the company will miss the low end of the guidance range in Q3 and withdraw its goal of operating profitability in Q4. As a result, if the company hits the mid-point of the guidance range and reaffirms Q4 operating profitability, we would expect the stock to go up.

The timing of this reset relative to the current stock prices is, again, not a prediction of future weakness. In fact we believe that many of the stronger stocks may be near seasonal bottoms.