Stock Update (NASDAQ:YHOO): Yahoo Should’ve Bought BuzzFeed, Not Tumblr And The Seven Dwarfs Of Acqui-Hires

Yahoo! Inc. (NASDAQ:YHOO) [at Forbes] – Yahoo has spent $2 billion in cash on Tumblr and an array of insignificant acquisitions. They would have been much more focused as a company if they’d spent it all on either BuzzFeed or Vice.
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Yahoo! Inc. (YHOO), with a current market cap of $35.33B, started the session at $35.80.
 
Shares have traded today between $35.15 and $35.99 per share with a one year range of $26.75 to $41.72.
 
YHOO shares are currently priced at 25.20x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 16.88x forward p/e ratio.
 

 
According to a consensus of 21 analysts, the earnings estimate of $0.31 per share would be $0.03 worse than the year-ago quarter and a $0.10 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $1.42, which would be a $0.10 setback when compared to the last year’s annual results.
 
The quarterly earnings estimate is predicated on a consensus revenue forecast of $1.04 Billion. If reported, that would be a 3.70% decrease over the year-ago quarter.
 
Recently, CRT Capital downgraded YHOO from Buy to Fair Value (Jul 16, 2014). Previously, FBR Capital Initiated YHOO at to Mkt Perform.
 
The average price target for YHOO shares by the analysts covering the stock is $39.50, which is 10.34% above where the stock opened this morning.
 
Summary (NASDAQ:YHOO) :  Yahoo! Inc. operates as a technology company worldwide. The company offers search products, including Yahoo Search that serves as a starting point to navigate the Internet and discover information; and Yahoo Answers, which enables users to seek, discover, and share knowledge and opinions across mobile phones, tablets, and desktop. It also provides communications products, such as Yahoo Mail that connects users to the people and things; Yahoo Messenger, an instant messaging service; and Yahoo Groups, which enables users to join groups based on shared interests and involvements. In addition, the company offers digital magazines comprising Yahoo.com that brings together the relevant content; My Yahoo, a customizable homepage; Yahoo Weather, which provides users with weather conditions and information for various cities and locations; Yahoo News that offers news through text, photos, and video; Yahoo Sports, which serves audiences of digital sports enthusiasts; Yahoo Finance that offers financial data, information, and tools, which facilitate users to make financial decisions; and Yahoo Entertainment and Lifestyles, a collection of properties focused on various trends and information in culture, women’s issues, and media. Further, it provides original, premium, and third-party news, finance, sports, entertainment, and lifestyle video content through various Yahoo properties, including Yahoo Screen and Yahoo Smart TV; Flickr, a Web and mobile photo management and sharing service; and Tumblr that offers a Web service and mobile applications, which facilitate users to create and share content of various kinds. Additionally, the company’s advertiser offerings include Search Advertising, Native Advertising, Yahoo Audience Ads, Yahoo Premium Ads, and Yahoo Video; and ad platforms comprise Yahoo Ad Manager, Yahoo Ad Manager Plus, and Yahoo Ad Exchange. It has approximately 800 million monthly users. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California.
 
Tag Helper ~ Stock Code: YHOO | Common Company name: Yahoo | Full Company name: Yahoo! Inc. (NASDAQ:YHOO) .


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1 comment to Stock Update (NASDAQ:YHOO): Yahoo Should’ve Bought BuzzFeed, Not Tumblr And The Seven Dwarfs Of Acqui-Hires

  • Alan Ball

    As a user Buzzfeed is awful, absolutely atrocious and terrible. Also it’s a top down content distribution model so its usefulness will wane with time. What we need are not more “televisions”, we need more tools to share original content. BuzzFeed is a short term gain, long term loss.