Yahoo! Sinks Under Rising Valuation Concerns

The Yahoo! (YHOO Quote) wave seems to have crested for now.

Shares in the Net media giant slipped 4% Thursday morning, a day after the company posted solid fourth-quarter earnings and guided toward continued growth in the first quarter. Most Wall Streeters duly noted the company's strong progress, though one major analyst broke with the flock and downgraded the stock on valuation concerns.

In a note issued after Yahoo! released financials Wednesday evening, Smith Barney analyst Lanny Baker downgraded the Internet bellwether to hold from buy. Motivating the change, said Baker, was Yahoo!'s "recent appreciation" toward his new price target for the stock, which he was concurrently raising from $50 to $46. ...