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Yahoo's Slide Won't Take Many Funds with It

Most managers weren't touching this stock with a 10-foot pole.

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The bad news is that Yahoo's (YHOO) revenues will fall well short of expectations, its earnings will stink, and its CEO will assume a lower-profile role with the company. The good news is that most fund investors will be largely unscathed.

Yahoo's shares took a tumble in after-hours trading Wednesday, following the company's announcement that CEO Tim Koogle would step down, and that it would record disappointing operating results during the current quarter. At 5:30 p.m. Central time, the company's shares changed hands at $18.31. That's a drop of nearly 20% from the price Yahoo closed at on Tuesday, $22.38, and it's more than 90% off its 52-week high of $205.63.

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Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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