Yahoo falls into $12 range, Dow enters 8,000 territory

Yahoo fell into the $12-a-share-range Thursday, marking the second consecutive day its stock tumbled to a new low.

The Internet company dipped as low as $12.47 a share during intraday trading, before ending the day at $12.65 a share--down just over 8 percent.

Each time Yahoo's stock drops into a new dollar range, analysts have noted that the border crossing serves as a psychological landmark for investors.

Yahoo falls into $12 range

(Credit: Yahoo Finance)

On Wednesday day, Yahoo crossed the $13-a-share threshold. Fear and loathing seem to have taken hold of its stock, with analysts panning the company's prospects in display advertising, given the shaky economy, in addition to a bleak performance on Wall Street.

In the last two hours of trading, Yahoo's shares crossed into the $12 range and quickly plummeted as the broader markets slumped.

The Dow Jones Industrial Average also hit a new psychological mark Thursday, falling below 9,000 for the first time in five years. The Dow ended the day at 8,579.19, down a whopping 678.91 points, or 7.3 percent.

The Nasdaq dropped nearly 5.5 percent, or 95.21 points, to close at 1,645.12, while the S&P 500 closed down 7.6 percent, or 75.02 points, to finish at 909.92.

And in the tech world, the CNET Tech Index, about 30 minutes before the close, was trading down 2.2 percent, or 26.41 points at 1,162.74.

Click here for ongoing coverage from CNET News, 'Tough times for tech'

[Lerianis]

Maybe it is time to freeze stock trading for the moment. I mean, right now, even with good announcements by the feds..... the prices keep on going DOWN DOWN DOWN! That leads me to believe that someone out there is pushing these things down for a reason.... possibly to bankrupt our country.

[6931kp]

It just amazes me that the leader of our country can't come out and even attempt a JFK or Roosevelt speech that would inspire the country. why bail the big boys, why not come up with something for the individuals who's retirements have been depleted. You can walk away from a house and rent to cut your losses, not much you can do when your hard earned money is gone.

[Penguinisto]

Okay... so? All tech apparently had a bad day (some worse than others if MSFT and CSCO are any indications... ouch! )

To be honest, I hope this means that folks start investing for the long-haul, and not so much with the speculation. This would help minimize all the crap decisions that businesses take just to make their stocks look prettier.

[Vegaman_Dan]

Microsoft Monday $24.91 Thursday $22.30 2.61 drop
Apple Monday $98.14 Thurdsay $88.74 9.40 drop
Google Monday $371.21 Thursday $328.98 42.23 drop
Yahoo Monday $15.31 Thurdsay $12.65 2.66 drop

If people focus only on numbers, then this all looks like doom and gloom. Another way to look at it is that this is an AWESOME time to invest. Sad that you missed out on investing in Microsoft, Apple, Coca-Cola, GM and othes when you could afford it? Now is your chance. How many times do you get a second chance? Go for it, people. Invest in America. Invest in your future.

[Penguinisto]

Hey Dan - look at the percentages of the total. ;)

[Vegaman_Dan]

Penguinisto wrote:

"Hey Dan - look at the percentages of the total. ;)"

I did. Beleive it or not, I can read and actually comprehend the comments made. I do read them before responding. I really do wish you would do the same. It would be a nice change of pace.

Congratulations are in order. Your Microsoft bashing troll activities are on par for another stellar day.

[Commander_Spock]

As the above subject line states: re: "Yahoo falls into $12 range, Dow enters 8,000 territory" They (YAHOO) should have sold the company when Microsoft offered to purchase it and now the shareholders must be banging their heads against the walls. Now, should Commander_Spock and Crew remind you of the words - "We Told You So"!

[twanlee9399]

Is any body serious about the stock market? I mean the dow drops into the 8 thousand range and nobody is thinking about pull the money dont drop 900 billion into the abyse,
Really is anybody not thinking about the future ? About how life will be if we do not pull the money out now ? We need to stop supporting wall street and the moguls that control it ! Our children will ask us why we kept putting in money while nothing is coming out ! They say oil is the law of diminishing returns well it is also now the stock market ! Please i beg anybody listening to stop and look at what we are doing and ask your selfs if the quick fix is worth it this time please stop selling out the country and its people!!!!!!!

[vtchuck2000]

And this comes only a few weeks after Microsoft announced their $40 billion stock buyback plan, ironically enough, it is roughly the same amount they were offering for Yahoo. I guess MS found a much better way of spending that extra cash they had.

[Commander_Spock]

Call what is happening with YAHOO - The GHOST OF YAHOO'S OS/2 GROUPS!

[Vegaman_Dan]

You've pretty much nailed it. MS bought back their own stock, kept it stabilized while Yahoo tanked. People were calling Microsoft foolish for doing the stock buyback. Their stock price in comparison to the market would tend to contradict that however.

[Vegaman_Dan]

I think I've got a few quarters in the console of my car i can dig out. Can I buy Yahoo for them? Seems like it won't be long before I can do that and expect some change in return.

[befond_dai]

Yahoo should be sold
MS is really a good buyer.

[SactoGuy018]

I think people are fearful because an Obama Administration will start to raise income and corporate taxes, the LAST thing we need to revive our staggered economy. Higher taxes will essentially drive the world's economy right into an economic depression, to say the least (go read why the Great Depression lasted longer than it should have when the Democrats raised the highest Federal income tax rate to 63% in 1933).

We should be doing the EXACT opposite, completely kiboshing the current Federal income tax system (which has turned into an uncontrollable mess that has effectively stifled our economy and created an environment of too many tax cheats) and replacing it with a simple, yet very effective consumption tax-based revenue system such as FairTax. Since under FairTax there's no such thing as taxes on paychecks, bank account interest, dividend payments, payroll taxes, and capital gains taxes, it would entice Americans to start saving (no worries about taxing interest-bearing bank accounts!), trillions of dollars Americans stashed away in foreign countries come back to the USA (since there is no tax incentive to "offshore" your assets), foreigners will invest in the USA without worrying about tax consequences, and American companies will keep more production in the USA (since there is no incentive to move production "offshore" to save on taxes).

Just getting back the trillions Americans have "offshored" would single-handedly stop the stock market slide, since the injection of several trillion dollars into our economy would provide a new, massive base of liquidity for new loans and lines of credit (definitely a lot more effective than that US$700 billion bailout!).