Yahoo shares retreat for a third session in a row on Tuesday, deal with Verizon finalized, CEO Mayer resigns

The acquisition of Yahoo! Incs core business by Verizon Communications Inc for $4.48 billion was finalized yesterday, while Yahoos Chief Executive Officer Marissa Mayer stepped down. This way the tech company, once valued at over $100 billion, was no longer a stand-alone internet entity.

Yahoo shares closed lower for a third consecutive trading session on Tuesday. The stock went down 2.11% ($1.12) to $52.00, which also matched the intraday low, or a price level not seen since June 7th ($50.28). In the week ended on June 11th the shares of the digital information provider added 6.76% to their market value compared to a week ago, which marked the tenth gain in the past eleven weeks and also the best performance since the week ended on August 14th 2016. The stock has pared its advance to 3.34% so far during the current month, following a 4.38% surge in May. The latter has been a fifth consecutive month of gains. For the entire past year, the shares of the NASDAQ-listed company gained 16.27%.

“Given the inherent changes to my role, I’ll be leaving the company”, Marissa Mayer wrote in an email to employees on June 13th, cited by Reuters. “However, I want all of you to know that I’m brimming with nostalgia, gratitude, and optimism.”

By combining Yahoos core business with AOL, Verizon is to establish a venture under the name of Oath, which is to be headed by Tim Armstrong, AOLs Chief Executive.

At the same time, what is left of the existing Yahoo will be renamed to Altaba, whose primary assets are to consist of its 15.5% stake in Alibaba Group Holding Ltd and a 35.5% stake in Yahoo Japan Corp.

In a note to employees Armstrong said that the services of the combined entity “reach over a billion people each month” as well as that “accomplishing our objectives and goals will require adjustments to the company.”

He also noted that “opportunity in front of us is not about the opinions from the pundits and it is not about the competition, it is about our ability to maniacally focus on delivering magical services to mobile enabled consumers.”

According to CNN Money, the 14 analysts, offering 12-month forecasts regarding Yahoo! Incs stock price, have a median target of $55.00, with a high estimate of $62.00 and a low estimate of $45.00. The median estimate is a 5.77% surge compared to the closing price of $52.00 on June 13th.

The same media also reported that 12 out of 19 surveyed investment analysts had rated Yahoo! Incs stock as “Hold”, while 6 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Yahoo stock are presented as follows:

R1 – $52.19
R2 – $52.38
R3 (Range Resistance – Sell) – $52.57
R4 (Long Breakout) – $53.14
R5 (Breakout Target 1) – $53.81
R6 (Breakout Target 2) – $54.08

S1 – $51.81
S2 – $51.62
S3 (Range Support – Buy) – $51.43
S4 (Short Breakout) – $50.86
S5 (Breakout Target 1) – $50.19
S6 (Breakout Target 2) – $49.92

By using the traditional method of calculation, the weekly levels of importance for Yahoo! Inc (YHOO) are presented as follows:

Central Pivot Point – $53.90
R1 – $57.51
R2 – $61.01
R3 – $64.62
R4 – $68.24

S1 – $50.40
S2 – $46.79
S3 – $43.29
S4 – $39.80