Home » Stocks » Bear Case Scenario Yahoo $YHOO, $GOOG, $BABA, $TCEHY, $FB, $TWTR, $LNKD

Bear Case Scenario Yahoo $YHOO, $GOOG, $BABA, $TCEHY, $FB, $TWTR, $LNKD

Yahoo is about to release earnings. Ponder this Bear Case Scenario.

The Alibaba thing is fully priced, pregnant and about to give birth.

The next howl about Yahoo is what are they doing with all the cash. There will be pressure to declare dividends. Dividend investors will be suspicious of dividends before results.

Yahoo is still not at par with Google as a search engine. How long will this continue before Yahoo becomes irrelevant?

Yahoo has one of the largest if not largest financial web sites. No one is pointing at it and calling it a cash cow. If the market turns down financial advertising will shrivel along with Yahoo revenues.

Yahoo is ad revenue dependent. If the economy turns ad revenues usually slide, digital or not.

Yahoo is become a TV or cable like network that needs to invest in unique creative and not just compete on engineering concepts. Think of what Netflix did with “House of Cards” and other shows.

George Gutowski writes from a caveat emptor perspective.