Yahoo shares fall; RIM rises on speculation
SAN FRANCISCO (MarketWatch) -- Yahoo Inc. shares retreated on Friday after the Internet pioneer warned investors that it might reconsider its plans to return cash from selling its lucrative Alibaba stake.
But the tech sector bounced back from a weak start, as the Nasdaq Composite (COMP) regained lost ground to eke out a fractional gain, closing at 3,021. The benchmark ended the week with a gain of 1.8%.
But the sector was weighed down by Yahoo Inc. (YHOO) shares of which fell 5.4% to close at $15.15. The previous afternoon, the company warned investors through a filing with the Securities and Exchange Commission that it was considering several initiatives under new CEO Marissa Mayer, including not returning all of the cash it gets from selling its stake in Alibaba to shareholders.
The move would be controversial, as many investors had been banking on the company's previously stated plans to return that cash to shareholders. Yahoo was downgraded to neutral by Bank of America Merrill Lynch on Friday morning in response to the filing.
"We had thought a more shareholder-friendly board would ensure all cash would be returned, and think it is unlikely this new 8-K would be filed without Yahoo board's knowledge and approval," analyst Justin Post wrote, trimming his price target on the stock to $17 from $18.
Other decliners among large-cap tech stocks included
One notable gainer was