Yahoo! is the owner of one of the world’s most popular search engines. As of now, it ranks second in this segment. The company was founded by Jerry Yang and David Filo in 1995. Yahoo! is headquartered in Sunnyveil, the United States.
As of 2011, annual turnover amounted to around $5 billion, and a net profit exceeded $1 billion. At the end of 2013, the company employed roughly 12,000 people.
Along with the search engine, Yahoo! offers its users plenty of useful and popular solutions. Yahoo! Mail is one of the top e-mail systems and the most popular with the users in the United States.
The stock of the company is traded on the NASDAQ under the ticker YHOO.
Trading Yahoo! stocks, you need to have in mind the factors impacting its price. The factors are multiple, and each of them is to be taken into consideration.
One of the factors is various new developments that make the service more attractive to users and expand its audience. Yahoo! stock can rise if the company develops new market segments. In 2010, for instance, Yahoo! released a new Mail program that allowed the company to gain new visitors.
It’s worth mentioning other examples of new developments like Dropbox, the file backup allowing users to send and receive large files. Before implementation, the limit was just 25MB. Implementation of the solution had a positive impact on the stock price because users found it convenient to use. Besides, the solution attracted new users to Yahoo!.
One of the factors affecting Yahoo! stocks is its collaboration with other IT and online giants. One of them is Microsoft Corporation. In 2009, Microsoft and Yahoo! concluded a search contract under the terms of which Yahoo uses Bing search engine to process search queries of the users from the United States and Canada.
Yahoo! stocks can be pushed up by the planned or conducted acquisitions of other companies. Typically, these decisions are taken to expand the sphere of influence, gain new visitors, and additional source of revenue. For the time of its being, this company has merged dozens of other companies.
The negative factor is a decrease in popularity of Yahoo!’s services with the users and criticism. In 2007, for instance, the company was severely criticized by Tom Lantos because Yahoo! gave the Chinese authorities thee-mail records of Shi Tao. Based on that information, Shi Tao was sentenced to 10 years in prison. The news releases like the above said bring discredit to the service and can make the stock price fall.
Also, you need to have in mind the company’s fiscal results. Besides, forecasts and announcements may also have a significant impact on the stock price. You can keep track important events affecting the stock price on the financial websites like:
Where and How to Make a Profit on Yahoo Stock
To buy Yahoo! stock, you need much money and time to gain a profit. The best way of making a profit on Yahoo! stock is to buy a binary option on Yahoo! stock instead of buying the stock itself.
To make a profit on the option, you need to figure out whether the price will rise or fall during a certain period.
One of the best brokers offering Yahoo! stock is 24option. This is a licensed time-proved broker.
I browsed the broker’s website and chose Yahoo! stock as an underlying asset. I set expiration to 6:30 p.m., typed $120 in the investment field, and clicked the HIGH button expecting the price to rise:
At that moment it was 6:10 p.m. meaning that I invested for a period of 20 minutes.
I knew if the price rose even by a tick in line with my forecast, I would get an 73 percent profit.
After a little while, I saw the following line on the transaction page:
Anyone can make a profit on Yahoo! stock. You can get a return even today because you can invest in a binary option, for instance, just for 5 minutes. Along with Yahoo stock, hundreds of other underlying assets are available to invest at 24option. Their list includes stocks of the world’s leading companies, indices, commodities, currencies. Besides, you can use different strategies like the hedging strategy that both limit your risks and help you generate a higher profit.