Yahoo dips into the $9 range

Shares haven't been this low in more than five years. Yahoo's next concern will be a drop to $5, a price that automatically forces institutional investors to jump ship.

Yahoo fell as much as 4 percent in early morning trading Thursday, pushing the Internet pioneer's share price into the $9 range.

Shares of Yahoo dipped as low as $9.92 a share, even as broader markets moved upward.

For Yahoo, its share price has been slipping in $1 increments at a rapid rate, creating a dark cloud around its ticker. The company's share price closed in the $10 range on Wednesday . It was in the $11 range on October 15 , the $12 range on October 9 , the $13 range on October 8, and the $14 range on October 7.

Yahoo's stock price over the past three months

The next critical milestone that investors need to be wary of is the $5 mark. A number of institutional investors, such as pension funds, asset managers, and endowments, have policies that require them to discard stocks that fall below $5. As a result, a stock price's fall will greatly accelerate after that milestone is crossed.

Yahoo is currently trading at a price it hasn't seen since March 2003, but a $5 price tag would take it to a level not witnessed since October 2002.


Join the discussion

Conversation powered by Livefyre

Don't Miss
Hot Products
Trending on CNET


Last minute back to school shopping?

Whether you're looking for headphones to study with or music-streaming gear, CNET rounds up a shopping guide just for you.