Analysts expect a flurry of shareholder lawsuits against Yahoo, and say it may even face direct pressure on its board.
Already, some Yahoo shareholders have started to question how talks were handled.
Bill Miller, a portfolio manager for Legg Mason, Yahoo's second-largest shareholder, told the New York Times in a Sunday interview that he would have considered selling to Microsoft for $34 or $35 a share.
While that was more than Microsoft's offer, it was less than the $37 per share Yahoo's board had insisted on.
Capital Research's Crawford also said investors generally were looking for Yahoo to sell at $34. He hoped shareholders pushed Yahoo to revisit the issue but was not optimistic, he told the newspaper. The company owns about 16 percent of Yahoo.
Yang, who owns about 4 percent of the company, was expected to hold a meeting with employees on Tuesday in an effort to reassure staff in the wake of the Microsoft talks ending.
Yang said in a post on the company's blog on Sunday night: "No one is celebrating about the outcome of these past three months ... and no one should. We live and work in a competitive world and the Web is only going to get more competitive. Executing on our strategic plan is what matters most."