Yahoo Stock Plummets, Dropping 20 per cent and Still Falling

After deciding to refuse to sell to Microsoft, Yahoo's stock prices have immediately dropped by 20 per cent and is continuing to drop. How low will Yahoo's stock price go?

It's going to be a long day at Yahoo. Today is the first day of trading since the Microsoft / Yahoo merger was officially put to rest. Yahoo's stock had jumped with the news of the buyout, going from $19 a share to $31. Most actually thought that Microsoft would make one more higher offer and go for about $35 a share which would have almost doubled the value of shares. Yahoo News says that despite the backlash, analysts doubt Yahoo shares will fall back to their $19.18 pre-bid price, partly because some investors may still be holding out hope that the software maker will renew its takeover attempt if Yahoo continues to struggle. Wait, isn't that YAHOO NEWS reporting on their own stock prices? Hmmm... TechCrunch is also watching the stock-price cliff dive saying that if prices do not drop below the original $19 per share that will probably mean that analysts are factoring in that another merger attempt from Microsoft or someone else will still happen. You can imagine that stock holders are going to be watching the downward spiral with very angry eyes and the higher ups at Yahoo are going to have a very big mess on their hands if this failed merger tanks the stock prices entirely. Can you imagine Microsoft coming back after a massive Yahoo stock price drop and scooping up the company for 1/2 of their original $40+ billion offer? If this was Microsoft's plan, it was the best business idea in history.