Tag Archives: yhoo

Could ‘Hidden Assets’ At Yahoo Push Up Its Bidding Price?

Yahoo ( YHOO ) has “hidden assets” that could drive up the bidding price for the struggling Web portal, says SunTrust Robinson Humphrey. “Perpetual” royalties from Yahoo Japan, thousands of patents and plentiful real estate could boost Yahoo’s bids, wrote SunTrust analyst Robert Peck in an industry report Wednesday. Those three critical aspects of the company’s valuation “are not well understood and could have material upside to bids, potentially driving them higher than our $6 billion to $8 billion published range,” wrote Peck. SunTrust raised its price target on Yahoo stock to 44 from 40 while maintaining a buy rating on the company. Yahoo stock was down a fraction in afternoon trading in the stock market today , near 37. While the company could bring in $6 billion net after taxes, Peck said, “Investors should expect bids in Round 1 (due Monday) to start lower than this, as bidders aim to bid just enough at first to make it into the next round. In Round 2, the bidding could become more intense and rise to the high end of our range, as we think there are several very qualified buyers.” The royalty stream from Yahoo Japan “is in perpetuity and represents 30% of Yahoo’s core advertising EBITDA (earnings before interest, taxes, depreciation and amortization) in 2016,” Peck wrote. He also said that Yahoo has more than 6,000 patents, “which could be worth more than the $1 billion to $3 billion range the company has cited.” The patents include deriving a user profile from questions and creating a system for customizing a website, according to the U.S. Patent and Trademark Office. And, Peck said, Yahoo owns more than 1 million square feet of building space and real estate that could be worth $1 billion. The company is reportedly is looking to sell a large parcel of undeveloped land near its Sunnyvale, Calif., headquarters that had been slated for possible development, signaling that it has now scrapped the building plan. Yahoo Bids Reportedly Due Monday Yahoo sent a letter to possible buyers last month, asking them to submit bids. Some buyers might be interested in all or part of Yahoo’s core Web business, while others might want Yahoo’s stakes in China e-commerce Alibaba Group ( BABA ) or Yahoo Japan. Yahoo has reportedly set an April 18 deadline for first round bids. Yahoo stock has more than doubled since the company hired Marissa Mayer, who had been a top executive at Alphabet ’s ( GOOGL ) Google, as CEO in July 2012. But she’s been unable to spark significant earnings and revenue growth, and Yahoo has struggled to build online-ad and mobile-ad revenue vs. rivals Google and Facebook ( FB ), among others. In the meantime, the company faces a proxy fight from activist investor Starboard Value, which wants to oust Yahoo’s entire board. An estimated 40 groups have expressed interest in buying all or part of the financially wilting Sunnyvale, Calif.-based Web portal. News site Re/Code said last week that documents Yahoo provided to potential bidders predict that the Web portal’s 2016 revenue will drop by close to 15% and its earnings by more than 20%. Yahoo is axing 15% of its workforce, or about 1,600 jobs. Rumored bidders for Yahoo include the Daily Mail, the British tabloid newspaper that on Monday reportedly confirmed its interest, attracted to Yahoo’s popular news and media properties. The Daily Mail is in preliminary talks with other investors to launch a bid for Yahoo, the Wall Street Journal reported Monday, confirming a previous WSJ report out Sunday. Google reportedly is considering a bid for Yahoo’s core business, as is Verizon Communications ( VZ ). In 2011, Alibaba CEO Jack Ma publicly declared his interest in acquiring Yahoo.

Apple, Amazon Lead 5 Tech Stocks Making Notable Moves

Loading the player… Apple ( AAPL ), Amazon ( AMZN ), Tesla ( TSLA ), Fitbit ( FIT ) and Yahoo ( YHOO ) are five big-name tech stocks making notable moves in the stock market today as the major indexes rally for a second session. The Nasdaq is trading at its highest level this year, and the S&P 500 is trading higher than the levels it saw in late December. Apple Retakes 200-Day Line Apple hit resistance at its 200-day moving average for the past week and a half, but looks like it may be able to close above that level today with a 1.5% gain in above-average turnover. Apple hasn’t traded above the 200-day since November, and that was only briefly. The stock is now 16% below its late-April peak. The consumer tech giant is set to report quarterly results in a few weeks. Analysts have been expecting lower iPhone demand this year, but some say there may be a pickup once the iPhone 7 is launched. Amazon Breaks Out Amazon is breaking out of a cup-with-handle base with a 603.34 buy point, rising 1.6%. Volume is tracking above average. The stock tried to edge into buy range the last two sessions but closed below the pivot. Shares are now trading 12% below their high reached in late December. Citi on Tuesday said Amazon is one Internet stock that has the greatest opportunity to produce better-than-expected Q1 results, which the e-commerce giant will report later this month. Tesla To End Losing Streak? Tesla is looking to end its four-session losing streak as it climbs back above the 250 price level with a 2.4% rise. But volume is not strong. The electric car maker is trading 11% below its July high. On Tuesday, Tesla introduced a few upgrades to its Model S, and Global Equities Research says this will improve the car’s production rate by 10%. That could be a good sign as Tesla is ramping up production of its Model X and prepping production for its Model 3. Fitbit Surges On Bullish Report Fitbit is jumping 12.7% in big volume, hitting a more than two-month high. The stock is trading 67% below its all-time high. Citi issued a bullish report on the stock, saying that Blaze and Alta sales could fuel upside to Q1 results and a positive Q2 outlook. The maker of fitness trackers said late last month that it sold 1 million units of each of the two new models in their first month of availability. Fitbit also reports earnings later this month. Will Yahoo Hit 8-Month High? Yahoo may be able to close at an eight-month high, climbing 1.2%, but volume is tracking lighter than average. Shares are 19% below their 52-week peak. Suntrust Robinson Humphrey raised its price target on Yahoo, which is looking to be acquired.

Yahoo Seen Bringing Verizon Heft In Ad Technology, Mobile Video

Troubled Web portal Yahoo ( YHOO ) would be a good fit for Verizon Communications ( VZ ), bringing the communications giant more heft in advertising technology and mobile video, Macquarie Capital said Tuesday. Verizon reportedly is among those that plan to bid for Yahoo’s Web business and its holdings in Yahoo Japan. Yahoo is looking to sell all or part of its operations, including its core search business and substantial holdings in Alibaba Group ( BABA ) and Yahoo Japan. Yahoo reportedly has set an April 18 deadline for bids. In the meantime, it faces a proxy fight from activist investor Starboard Value, which wants to oust the entire board. “Yahoo’s current turnaround plan focuses on three key platforms (mail, search and Tumblr), four key verticals (news, sports, finance and lifestyle), and two advertiser offerings (Gemini and BrightRoll),” wrote Macquarie analyst Amy Yong in a research report. “Yahoo’s strategy and assets fit well with Verizon’s three-pronged plan, but execution is key,” she said. “If done properly, we believe the companies’ combined assets would allow for more aggressive competition in spaces including: ad-tech and mobile video … as well as content and display advertising.” “Significant” job cuts would result from a Verizon-Yahoo deal, Yong said. Yahoo already is in the process of axing 15% of its workforce, or about 1,600 jobs. Macquarie analyst Ben Schachter estimates that Yahoo’s core business could fetch $3 billion to $5 billion. He estimates 2016 EBITDA (earnings before interest, taxes, depreciation and amortization) of $750 million. Yahoo’s market cap is $34.5 billion. Yahoo Revenue Seen Falling 15% This Year An estimated 40 groups have expressed interest in buying all or part of the financially wilting Sunnyvale, Calif.-based Web portal. News site Re/Code said last week that documents Yahoo provided to potential bidders predict that the Web portal’s 2016 revenue will drop by close to 15% and its earnings by more than 20%. Rumored bidders for Yahoo include the Daily Mail, the British tabloid newspaper which on Monday reportedly confirmed its interest, attracted to Yahoo’s popular news and media properties. The Daily Mail is in preliminary talks with other investors to launch a bid for Yahoo, the Wall Street Journal reported Monday, confirming a previous WSJ report out Sunday. Yahoo stock rose more than 1% on Monday and was up a fraction, near 36.50, in midday trading in the stock market today . Yahoo sent a letter to possible buyers last month, asking them to submit bids. Some buyers might be interested in all or part of Yahoo’s core Web business, while others might want Yahoo’s stakes in China e-commerce Alibaba or Yahoo Japan. Google, the main division of Alphabet ( GOOGL ), reportedly is considering a bid for Yahoo’s core business. Media company Time ( TIME ); Japan’s SoftBank ( SFTBY ), the majority owner of Yahoo Japan; and several private equity firms also are kicking the tires, reports Bloomberg. Yahoo has also held meetings with IAC/InterActiveCorp ( IAC ) and CBS ( CBS ), the WSJ said. One-time potential suitors including AT&T ( T ) and Comcast ( CMCSA ) have decided against bidding, Bloomberg reported.  Microsoft ( MSFT ), which failed with a hostile bid for Yahoo in 2008, also won’t bid, according to Bloomberg.