Back to top

Image: Bigstock

Here's How Investors are Reacting to Verizon's Purchase of Yahoo Inc.

Read MoreHide Full Article

Verizon (VZ - Free Report) has won the bidding war, and it will soon own Yahoo’s core internet properties.  The assets will be bought out in a cash transaction worth $4.83 billion.  Synergies are expected to be realized between Yahoo and Verizon’s AOL Internet operations, and by adding Yahoo to its portfolio, Verizon will have more exposure to advertising revenues.  The company looks like it will have some advantages with regards to capitalizing on the coveted mobile ads space, but it will still be a far cry from being an advertising leader like Facebook and Google (GOOG - Free Report) (GOOGL - Free Report) . 

Today, VZ and YHOO shares are down by 0.64% and 2.65% respectively.  Investors have been buzzing on social media, and here’s how a few of the naysayers have are reacting to the deal.


There is another perspective, and some investors hold a great deal of optimism and visualize great things to come as a result of this acquisition.



In addition to the optimism and pessimism surrounding the deal itself, a lot of the reactions to the deal revolve around uncertainty regarding whether or not Marissa Mayer is staying at Yahoo after the acquisition is finalized.  There are also many tweets praising or dissing Mrs. Mayer’s performance as the CEO of Yahoo.

Bottom Line

Changes are bound to take place for Yahoo when it comes under Verizon’s umbrella.  It’s still too early to tell how the deal will pan out for investors, so it may be best to hold off on buying shares of either company right now.  What’s certain is that there is a wide range of opinions among investors.  Both companies are under a lot of scrutiny, so it will be interesting to see how Verizon seeks to quell the current fears of VZ stock holders.

The Zacks Rank is a truly marvelous trading tool.  Our ranking system has beaten the S&P 500, yielding an average return of 25% per year for the last 29 years!  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Alphabet Inc. (GOOG) - free report >>

Verizon Communications Inc. (VZ) - free report >>

Alphabet Inc. (GOOGL) - free report >>