Yahoo share price at pivotal point

Ahead of the company’s earnings announcement on Tuesday, sentiment towards Yahoo appears to be strong – but is this outlook well-founded? 

Yahoo chief executive officer Marissa Mayer has pinpointed 2014 as the company’s ‘crossover’ year; she predicts that by December the company will have more users coming via a mobile device than from desktop PCs. The big question is, with this migration of users from platform to mobile; are they still able to retain the same value from each customer, or even increase the value?

When you consider that Yahoo has just parted ways with its chief operating officer Henrique De Castro, we should be slightly wary of how well the company is operating – especially when a number of the larger technology companies have found this transition to mobile devices difficult as the value to advertisers is diminished.

The share price is at a pivotal point having broken below the 50-day moving average, which over the last six months has proven to be a real region of support. Any disappointment in the figures and a break below the $37.30 level could see a further squeeze down to $36. It is also worth noting that some űber-bears are even looking for a retracement all the way back to $31. 

Yahoo! chart

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