What's Next for Yahoo! (Nasdaq: YHOO) and J.C. Penney (NYSE: JCP) Stocks

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Due to two major announcements this week, both Yahoo! Inc. (Nasdaq: YHOO) and J.C. Penney Company Inc. (NYSE: JCP) stocks are in the red today (Thursday).

This week, Yahoo! parted ways with Chief Operating Officer Henrique de Castro, whom Chief Executive Officer Marissa Mayer poached from Google in October 2012. That's because the ship de Castro was steering - digital ads - has more than halved since 2008, and dropped from 6.8% to 5.8% in 2013.

The numbers, plus an internal leadership shuffle, have investors wondering what's to come of Yahoo! stock - especially considering digital ad revenue accounts for about 40% of Yahoo's sales.

Also this week, J.C. Penney announced it will close 33 stores and cut 2,000 jobs. Usually this kind of trimming-down strategy helps a company's stock, but will it work for the 112-year-old retail mainstay?

Watch the video of Money Morning Chief Investment Strategist Keith Fitz-Gerald on FOX Business' "Varney & Co.," this morning, in which he tells investors what the future holds for Yahoo! and J.C. Penney:

 


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