Obviously, Yahoo's shareholders are disappointed that their increase now has been flattened. It's quite possible that the market will continue to react against Yahoo in the coming months, although everyone probably was aware that Yahoo would shoot down initially. From a stock perspective, one has to wonder to what level Yahoo's shares would plunge? From there, you also have to wonder if the dramatic drop will invoke the much anticipated onslaught of lawsuits from investors?
At this moment, I think that only the most conniving investors would end up suing Yahoo. But at the same time I think Yahoo should make a move to re-purchase their shares to prevent another move like this from happening for a while. Maybe Mr. Yang can dip into his deep pockets and grab back his shares too so he can regain at least some control over his company.
In my viewpoint, the chaos is great for investment. Low stock price at a highly valued company means great return later. Just use investors' sheep mentality against them to win in a situation like this.
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