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Yahoo Shrinks, Stock Price Plummets

So what's Jerry Yang to do next? Just months after the Yahoo Inc. (Nasdaq: YHOO) CEO pitched investors on a growth plan he said was superior to a $31 per share offer from Microsoft Corp. (Nasdaq: MSFT), he's now looking at a stock price that's 60 percent below Microsoft's offer, and it now appears that Yahoo is shrinking, not growing, as Yang originally promised.

Yahoo slightly beat profit estimates on better search revenues, but at the same time it lowered guidance to between $7.18 billion and $7.38 billion, from a previous forecast of $7.35 billion to $7.85 billion. It also announced that its shedding 1,500 workers.

The bigger problem for Yahoo is the stock price, which delivers its daily referendum on Yang, who led the arrogant board to turn down Microsoft's $31 per share bid back in the spring. Shareholders would probably look at this now as a gift they regret not taking. This morning, Yahoo stock bounced 5 percent -- trading at about $12.50 in the morning session. But that's a far cry from $31.

Read the rest on Contentinople. – Scott Raynovich, Contentinople

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