close icon

What is Left of Yahoo’s Recovery?

Yahoo! Inc. is ready sell its assets with Verizon Communications and YP Holdings among the candidates willing to acquire Marissa Mayer’s company’s core business. Mayer agreed on selling Yahoo’s properties after pressure from Starboard Value. But you can read all that in every financial website, so are we bothering you with it? Because all of these events happened after February 5th, 2016. Why is February 5th so important? Because it is the day “Yahoo to Finally Catch a Break?” was published. In that article shared our opinion that “while there seems to be no end in sight for Mayer’s troubles, there is no reason why Yahoo! stock could not rise.” Our positive outlook on the stock was motivated by nothing more than the chart below.
yahoo 5.2.16
The Elliott Wave Principle, which was applied to this chart for the purposes of analysis, says that if you spot a five-wave impulse, such as the one shown above, you could expect a three-wave move in the opposite direction. That is all. There was no way we could have known what the future was holding for the company itself, but we did not need to, because the natural market cycle is much more important. Let’s see how Yahoo stock looks like today, two and a half months after the forecast.
yahoo daily 19.4.16
The price of the stock began rising almost right away and is currently hovering around 36.50 dollars a share. Most would say the reason for this speedy recovery are the acquisition talks, but as you clearly saw, it has been predicted much earlier. Instead of searching for pseudo-reasons, we would say that this was another occasion, when the Wave principle managed to put us ahead of the news.
What to expect from now on? Well, the recent recovery appears to be a just single wave. We need three. So, it seems we could expect a small decline in three-waves for wave B, before the bulls take Yahoo stock to the area between the 50.0% and 61.8% Fibonacci levels in wave C.

What other markets are you interested in? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order one of our 8 Premium Forecasts due out every Monday. Stay ahead of the news in any market with the Elliott Wave principle.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

MongoDB – Bearish Pattern Joins Nosebleed Valuation

MongoDB Inc. is a general purpose database platform developer and provider. The company was founded in 2007, but only came public ten years later – in 2017. During the following four years, the stock has risen from an IPO price of $33 to $515 a share as of last week. So, it is fair to…

Read More »

Pandora Does Things Right. Stock May Need a Breather

When we wrote our previous article on Danish jewelry maker Pandora in December, 2020, the stock was up over three-fold since March. That recovery from DKK 180 to DKK 651 didn’t not come out of the blue, though. It was the result of a bullish setup we managed to identify as early as July 2019.…

Read More »

Match ‘s SP500 Inclusion a Good Excuse to Reach $200

Match Group Inc. rose over 10% in post-market trading Friday following reports that it is going to be included in the S&P 500. The company, which owns Tinder, OkCupid and most other major dating apps in the U.S., has a market cap of over $41B. Despite the anticipated “summer of love”, though, this is not…

Read More »

Cameco Stock Seems to Have Finally Turned a Corner

Uranium spot prices are on the verge of breaking above $34/lb, up over 80% from the bottom of $18/lb reached in late-2016. Cameco, as one of the world’s top uranium producers, is now seeing its stock price rising in tandem. Yesterday, it closed at $19.16 after reaching $21.95 in June. We first covered Cameco in…

Read More »

A Fresh Look At Cigna ‘s Elliott Wave Super Cycle

In a case study article on Cigna, published in October, 2016, we examined how a fundamentally sound and undervalued stock can still drop nearly 90%. The reason for that crash didn’t lie in some company specific issue. Rather it happened to occur during the biggest financial crisis in 80 years. Nevertheless, we made the point…

Read More »

CBOE Takeover Rumor Lifts Stock to Elliott Wave Target

We first wrote about CBOE Global Markets less than eight months ago. The S&P 500 had already recouped all its COVID selloff losses and was hovering at new all-time highs. CBOE, in contrast, was still down 30% from its 2018 record, trading below $97 a share. For some reason, the market was ignoring the company’s…

Read More »

Ahead of Ulta Beauty ‘s 150% Gain Since Lockdown

Buying shares in a beauty retailer in March 2020 sounded like a crazy, stupid idea. Stock markets around the world were plunging at a record pace amid a global GDP crash resulting from government-enforced lockdowns. People were stockpiling necessities in preparations not to leave their homes in the foreseeable future. With COVID-19 cases rising everywhere,…

Read More »

More analyses