Yahoo! Inc. (YHOO) is a technology company engaged in providing Internet search, communication and digital content with products including Search, Communications, Digital Content, Flickr and Tumblr. The stock is currently trading around $39.56 around the middle of its 52 week range of $33.16-$52.62. The stock has been under performing the market this year falling 21.64% year to date. YHOO is scheduled to report earnings after the close today, and the stock is up $0.01 or 0.04% on the session ahead of the close.

Over the past 12 quarters YHOO has rallied on earnings day 5 times with an average move of 4.83%. The stock appears bearish on a chart going into the release having traded below or in the Ichimoku Cloud for the past few months since March on the daily bars. Over the past 12 quarters YHOO has rallied from earnings to the nearest options expiration 5 times with an average move of 5.28%. The stock looks as if it could drop like a rock in today’s session following the 4 month trend. Investors are expecting to see how the company performs having seen falling revenue recently. The main portion of earnings investors are expected to be focused upon is the spinoff company Alibaba and their growth. Other key parts of earnings is growth at Yahoo’s core.

The options market is currently implying a move of around $1.84 or 4.6% in YHOO by this Friday’s close giving us targets of $37.72 and $41.40.

Andrew Keene

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