Yahoo stock sank to a new 52-week low on Thursday, as worries about its Asian assets continue to weigh on the stock.
Shares of Yahoo fell to $US28.85 in midday trading on Thursday, amid a broader market selloff in which the Dow Jones Industrial Average fell 200 points.
While just about all tech stocks got whacked in Thursday’s down market, the selloff took Yahoo’s stock to a new low.
Yahoo is struggling to boost its revenue and traffic, three years into a turnaround effort led by CEO Marissa Mayer.
While Yahoo’s business has stalled, investors have bid up the stock because of Yahoo’s 15% stake in Chinese e-commerce giant Alibaba Group.
But as China’s economy has stumbled, investors have become more bearish on Alibaba’s stock, which has in turn weighed on the value of Yahoo’s stock.
More worrisome for Yahoo, its plans to do a tax free spin off of its Alibaba stake — a move long clamored for by investors — has been called into question. Earlier this month the IRS declined to give its advanced blessing to the transaction in a so-called “private letter ruling” that Yahoo had requested.
The IRS did not outright reject the transaction, but Wall Street is worried that the deal is no longer a sure thing.
Shares of Yahoo are now down 45% from their 52-week high in November 2014. That said, Yahoo stock is still up roughly 85% from when Mayer took over as CEO in July 2012.
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