Yahoo Surges To New Highs, Outruns Alibaba
Jenny Rebekka | Feb 15, 2017 01:46PM ET
Shares of Yahoo! Inc. (NASDAQ:YHOO) surged to a new multi-year highs today before staging a sharp reversal. The stock has recently decoupled with Alibaba (NYSE:BABA). Usually the two stocks trade lock-step because Yahoo! owns a huge position in the Chinese online retailer, but recently Yahoo! has jumped sharply higher on its own.
This was likely because of short covering and noting else. Investors should not buy into the hype. In fact, today's massive jump is likely a long term top and can be shorted. Blow-off tops are huge topping signals and I expect a sharp drop back to the $42.50.
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