Yahoo Stock Drops on 3Q Forecast Warning

Two things worth noting: (a) that when Yahoo runs AP stories about itself, there’s no exclamation mark after their own name; and (b) this quote:

But the prospect of a slowdown in online advertising nevertheless rattled Wall Street, which has been operating under the assumption that Internet companies would fare relatively well even in a sluggish economic environment because of the Web’s rapid overall growth.

“The Internet, and Yahoo in particular, was supposed to be a safe haven, so this is a little bit of a ‘Whoops!’ that tends to make people very nervous,” said American Technology Research analyst Rob Sanderson.

Ah, yes, Internet companies — why would anyone expect volatility in those stocks?

★ Wednesday, 20 September 2006