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
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) will bring together the industry's leading online marketing practitioners to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, the comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!