Why Yahoo (YHOO) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of Yahoo Inc.  (YHOO) are down -2.75% to $34.63 in pre-market trading on Wednesday after Bernstein cut its price target to $40 from $43 following the company's weaker than expected second quarter results, and light third quarter revenue guidance.

Yahoo also said Alibaba has approved its request to reduce the number of shares it will have to sell in the Chinese company's initial public offering.

Bernstein said it sees "high risk that the M&A will destroy value," yet kept an "outperform" rating on the stock.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

Separately, TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate YAHOO INC (YHOO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Equifax Breach Reveals Frightening Truth: Companies Can Delay Disclosing Hacks

How Alibaba's 'Genie' Smart Speaker Can Overcome the Amazon Echo's 3-Year Head Start and Still Win

Facebook, Apple, Netflix and Google Have Caught the Flu -- Here's How Not to Get Killed By It

How to Play the Coming 'FANG Flu'

Travis Kalanick and the Terrible, Horrible, No Good, Very Bad Week