Yahoo set a new stock low yesterday following reports that the weakness in online advertising may last longer and be more severe than originally thought.
Yahoo fell to $33-13/16 during the day to set the new low. The stock rallied to close at $34-15/16. Yahoo's stock had been as high as $250.
Yesterday's low was set following reports that Derek Brown, an analyst at W.R. Hambrecht, San Francisco, dropped Yahoo's rating from buy to neutral. Brown said recent trends in the Internet industry and the overall economy suggest that Yahoo's advertising problems could extend throughout all of next year, according to reports.
Yahoo has suffered as dot-com failures have cut into online advertising.