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Yahoo singing the blues

August 10, 2012: 11:58 AM ET

Shares of Yahoo (YHOO) were down Friday after the company's new CEO, Marissa Mayer, said she's reviewing Yahoo's business strategy.

That's not usually a bad thing but it's making investors nervous.

That might be because the review could lead to changes in the restructuring plan the company has already started to implement. It could also throw a wrench into a previously announced plan to return the cash it generated from a deal to sell its stake in the Chinese conglomerate Alibaba Group to shareholders.

In late May, Yahoo agreed to sell half of its 40% stake in Alibaba back to Alibaba for $7.1 billion.

Is Mayer going to far to fast? StockTwits users weigh in.

Sejd213: $YHOO Hello Ms. Mayers, are you sure you`re going to last one year or is the exit door closer than you think!!

ldrogen: Mayer's decision to reinvest in $YHOO instead of return cash to shareholders is getting big thumbs down vote from current holders

Related: Here's the mess Marissa Mayer is inheriting

While investors may initially be skittish about Mayer taking a full-blown review of the company's operations, it may actually help Yahoo regain its footing.

bradloncar: I don't blame Marissa Mayer for keeping a lot of that Alibaba cash. I'd love to see $YHOO do a transformational acquisition.

stephanie_link: ML downgrades $YHOO after new CEO changes tune and likely to invest more intern & do more M&A. Kind of think this is what they need to do...

ericjackson: While everyone talks Alibaba cash, @karaswisher notes $YHOO might be closing in on Y Japan stake sale for $4.5B http://t.co/4Wlb41F1

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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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