Microsoft‘s (MSFT) CEO Steve Ballmer said that they’re still interested in a merger deal with Yahoo (YHOO). Last year, Microsoft offered Yahoo $31 a share, but Yahoo rejected it. That was not a smart move. Yahoo is currently around $14 a share.
Although Microsoft has a large cash horde, I don’t think buying Yahoo would be a wise move for them. Yahoo’s fundamentals are simply too weak. At Portfolio Grader, I give Yahoo failing grades for both Earnings Growth and Earnings Momentum.
I currently rate both Microsoft and Yahoo as sells, though I like Google (GOOG) and currently rate is a buy.