Yahoo to report on Tuesday

Yahoo will announce its first-quarter results for 2014 on Tuesday 15 April at 9pm (London time). The consensus is for GAAP earnings per share of $0.30, with revenue of $1.08 billion and adjusted net income of $376.9 million.  

In January, Yahoo revealed a net income of $348 million and EPS of $0.33 for Q4 2013; this compares with a net income of $272 million and EPS of $0.23 for the same period in 2012.

The internet giant is losing out on revenue as e-commerce companies are advertising more on Facebook and Google. Some analysts have been critical of Marissa Mayer's appointment as CEO of Yahoo in July 2012, as revenue since has not increased as much as they anticipated. However, the share price has increased by 120%.

Yahoo holds a 25% stake in Alibaba, which is set to float in the near future. We are offering a grey market in what the market capitalisation of the Chinese internet giant will be, which currently suggests a value of $177 billion.

Yahoo is a component of the US Tech 100. Since the start of April the indices has lost 3.4%; in the same period Yahoo has lost nearly 6.8%. There are concerns of a bubble in the technology sector.

If Yahoo results are worse than expected we could see a drop below the 200-day moving average of 3397. The stock would need to break through the 3600 level if it is to retest 4000 mark.

The stock has fallen through the 200-day moving average and trading at $33.67 in the pre-markets, making attempts to break back above the metric. While below it, there is a bias to the downside.

With the share price now down 18% since its highs in early January – one would need to keep a close eye on the 11 April lows of $32.10. Any breach here targets $30.30. The stock will would need to break through the 3600 level if it is to retest 4000 mark.

Yahoo is available for extended hours trading. Here is a  list of US stocks that can also be traded outside New York Stock Exchange trading hours of 2.30pm to 9pm (London time).

Yahoo chart

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