I guess Yahoo possibly talking with AOL again and launching a brand new advertising platform were not enough to ease opinions on the current state of Yahoo. Collins Stewart analyst Sandeep Agrawal does not have a lot of faith in Yahoo right now. He maintains his hold status on the stock, and places the value at $21. That's quite a bit less than the $31 Microsoft was offering to acquire Yahoo earlier this year.
Agrawal writes, “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 renewed restructuring efforts. We don't see any near-term upside in the shares of YHOO on a fundamental basis.”
Sounds like deal or no deal, Yahoo is screwed at the moment. What do you think?
Google Launches Facts Site About Yahoo Search Ad Partnership
Meet Your Favorite Search Engine Watch Contributors
Many of SEW's leading expert contributors will be at ClickZ Live, the new online and digital marketing event kicking off in New York (March 31-April 3). Hear from the likes of: Thom Craver, Josh Braaten, Lisa Barone, Simon Heseltine, Josh McCoy, Lisa Raehsler, Greg Jarboe, Dan Cristo, Joseph Kerschbaum, John Gagnon, Eric Enge and more!