Have you noticed that Yahoo stock has dropped by an average of 15 pts since Answers came online?
Question:
Anyone care to fathom a guess?
Answer:
I think that's a spurious correlation. It's not like Yahoo derives earnings from Answers, so investors don't really care one way or the other.
Yahoo derives earnings from selling advertising, and the stock has been under pressure because Yahoo has had difficulty competing effectively with Google's pay-per-click ad service. Yahoo has a new program called Panama that is supposed to be better, but there were some delays in getting it rolled out, and investors aren't really a patient bunch. Why wait around to see if Yahoo can get it together when Google is already out there making money with their service. Every day that Panama was delayed was another day headstart that Google had, and Google's not a company that you want to give much of a headstart to.
AnswersRoom.com has the same affect on the price of Yahoo stock, as the concept of dying has to do with a lifetime of breathing. Both things happen, but neither is cause or effect.
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