Yahoo (YHOO) will report quarterly earnings after the bell today, an event that appears largely uneventful for its share price. Yahoo is stuck in a sideways range, in the middle of its 52-week low and high.
Yahoo is trading around 5% below its yearly high and 10% its low:
Investors who were caught up with the froth in social media stocks like Facebook (FB), LinkedIn (LNKD), and Yelp (YELP) might want to look at the progress of Yahoo’s turnaround. The main focus is going to be on the vision from its new CEO, Marissa Mayer.
In the last quarter, Yahoo made a few changes that will improve the focus for the company:
- Yahoo announced it would exit South Korea, since it is underperforming there.
- A new, tidier home page is being launched. The page generates 4.4 billion views each month.
- Yahoo earned $3.65 billion from the sale of its holding on Alibaba. Yahoo has yet to decide if the funds will be used for a buyback, or given back to shareholders as a dividend payment. In September, the company said it planned to give more than 85% of the proceeds back to shareholders.
- A Yahoo-Bing ad network was launched. This allows advertisers to buy text ads for 3rd-party sites.
- At a company meeting, Mayer said she would only approve projects that would generate 100 million users or $100 million in revenue.
Notable management changes at Yahoo are:
- Mayer brought in Henrique de Castro as Chief Operating Officer, an ex-Google employee, a move that will cost Yahoo up to $56 million over four years
- Ash Munshi, CTO, left the company.
- Chief Financial Officer (“CFO”) Tim Morse departed.
Business Section: Investing Ideas
Investors who want to dig deeper in Yahoo should compare it to its competitors.
1. Yahoo! Inc. (YHOO, Earnings, Analysts, Financials): Operates as a digital media company that delivers personalized digital content and experiences, across devices and worldwide. Market cap at $18.76B, most recent closing price at $15.84.
2. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $241.46B, most recent closing price at $28.64.
3. AOL, Inc. (AOL, Earnings, Analysts, Financials): Operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Market cap at $3.41B, most recent closing price at $36.27.
4. Facebook, Inc. (FB, Earnings, Analysts, Financials): Engaged in building products to create utility for users, developers, and advertisers. Market cap at $40.71B, most recent closing price at $19.0.
Use Kapitall’s free analytical tools. Click through to add/change the metrics:
Compare changes in analyst ratings:
Compare changes in POP (Price of Profit – basically the forward P/E):
To interact and discuss these picks with users, attach your watch list or portfolio to your friends on Kapitall. Message the author. He is ranked sixth (by points) on the all-time leaderboard. The leaderboard is located on your score icon -> Leaderboard. Members on Kapitall earn free points, and even more points with every Kapitall Generation trade. These points may be redeemed for goods at the Kapitall store.
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- Yahoo! Inc. (YHOO, Chart, Download SEC Filings)
- Microsoft Corporation (MSFT, Chart, Download SEC Filings)
- AOL, Inc. (AOL, Chart, Download SEC Filings)
- Facebook, Inc. (FB, Chart, Download SEC Filings)
- Google Inc. (GOOG, Chart, Download SEC Filings)
New to Kapitall?
1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter