Why Yahoo's Bad Earnings Are More Important Than Intel's (YHOO, INTC)

Includes: AABA, INTC
by: Roger Nusbaum

Roger Nusbaum submits: Both Intel and Yahoo had bad earnings reports. This is likely to have a palpable impact for several days.

Several days?

It is probably a good bet that Yahoo (client holding) will see $40 in our lifetime, or more likely, before Valentine’s Day. [Ed: YHOO dropped to ~ $35 AH yesterday.]

Intel is a different story. Intel's core product -- microprocessors for PCs -- is no longer the most important kind of semiconductor. One phrase I have used to describe companies is that nothing is going to happen in so-and-so’s industry without so-and-so.

This is true for a lot of companies, but not forever. I think Intel’s time with this description is over until it proves it can be relevant in different parts of the chip world.

But Yahoo still owns this distinction as it pertains to the Internet sector.

Yahoo is a long term holding for most clients. While I was writing this post I bought some stock personally at $35.50. For the first $0.34 I am wrong. Hopefully the next few weeks are better.

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