Yahoo Shares Plunge 22 Percent

Yesterday Yahoo was scheduled to implement a new advertising software formula meant to boost its advertising profits to Google level. The most trafficked brand on the Internet not only misses the launch of the pivotal advertising platform but also failed to meet analyst predictions for the closing quarter, announcing revenue of $1.12 billion, while the average estimative value was reaching $1.14 billion. Although the second-quarter results were solid and were mirroring just about analyst estimates, news of the unexpected delay tilted the balance.

The bundle of the two has lead to a stock depreciation of 22 percent. News of the ad software delayed for the end of the forth quarter spawned a share plummet of $7.04, and the stock closed at a low of $25.20. This is the largest stock plunge since October 2000 for Yahoo and translates in an estimated 10.4 billion dollars of financial loses for investors. At a certain point during the transactions, Yahoo's shares had dropped to as little as 25.04 per share.

The share plunge has determined several market analysts to downgrade Yahoo's stock and to comment on the share plummet potentially affecting the whole market.