Analyst: Fundamentals are deteriorating at Yahoo

Analyst: Fundamentals are deteriorating at Yahoo

Summary: An analyst trimmed revenue estimates for Yahoo this morning, noting some of the factors that seems to be bringing the company down with no relief in sight. Collins Stewart analyst Sandeep Aggarwal said in a research note that he believes Yahoo has been hurt more seriously by the weak ad display market, that the Google-Yahoo ad deal has only a 50 percent probability of a positive outcome and the restructuring actions - such as the hiring of consultants Bain & Co.

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An analyst trimmed revenue estimates for Yahoo this morning, noting some of the factors that seems to be bringing the company down with no relief in sight. Collins Stewart analyst Sandeep Aggarwal said in a research note that he believes Yahoo has been hurt more seriously by the weak ad display market, that the Google-Yahoo ad deal has only a 50 percent probability of a positive outcome and the restructuring actions - such as the hiring of consultants Bain & Co. - doesn't bode well for internal retention.

The note reads, in part:

We believe that the fundamentals at YHOO are deteriorating. On the one hand economic headwinds and turmoil in the financial markets are causing weaker display ad revenues. On the other hand changes with the minimum bid with search and a possible GOOG/YHOO deal are causing an outcry among many advertisers. To further complicate the situation is an ongoing loss of talent which might accelerate with the renewed restructuring efforts. We don’t see any near-term upside in the shares of YHOO on fundamental basis. However, we would not rule out a possible MSFT/YHOO deal in the future.

Yahoo Collins Stewart

Topic: Social Enterprise

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4 comments
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  • So what does Yahoo mean anymore stupid or we write browsers?

    I don't use Yahoo anylonger cus, but it was the most exciting ISP for many years. Stalin Hornsby
    rtirman37@...
    • Yahoo mean Yidiott....

      turned out to be true.
      joemartn
  • I have java 6 Update3,5,&7 ; exclusive.

    I just wanted to bost the three new java icons in my installed programs. Yea I wrote a patch into 5 Update5 and it carried. Promqry Hacker 2006 (permission Nov17,2005 Media Transfer Protocal).
    rtirman37@...
  • RE: Analyst: Fundamentals are deteriorating at Yahoo

    So, Ford turns to GM to make their cars. The same analyst would give that a 50% chance of success? Ya think?
    tburzio