*Online Ad Fears Sock Yahoo Stocks
Yahoo shares fell 7 1/4 points, nearly 15 percent, to close at $41 5/8. Yahoo's previous low was $42 7/16 in November 1998.
Yahoo's stock woes came after a warning from Morgan Stanley Dean Witter that the company's revenue targets could be off by as much as 30 percent. According to reports, analysts are concerned that Yahoo, which is heavily dependent on advertising, will suffer the most due to expected declines in online advertising.
Yahoo had traded at more than $250 at one point this year in intraday trading.
Yahoo also lost a key court case in France this week. The French ruling bars the company from giving French citizens access to sites selling Nazi merchandise.