This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How Scott Thompson Can Monetize Yahoo! (Update 1)

The potential for Yahoo! to get into into the micro-payment business was also brought up yesterday by analyst Trip Chowdhry of Global Equities Research, who believes it could be a boon for the company.

Jefferies & Co. analyst Youssef Squali, however, downgraded the stock from buy to hold and wrote that the proceeds from the sale of the Asian assets could be used for investments and mergers, as opposed to being returned to shareholders.

Stifel Nicolaus speculated on the potential acquisitions in a research note, citing WebMD (WBMD - Get Report), OpenTable (OPEN) and The Weather Channel as possible targets.

Third Point's Dan Loeb may have something to say about the use of the cash Yahoo! receives from any Asian sale. Loeb, who owns 5.2% of the stock, has previously been very critical of the company, having called out the board of directors, and asked for the resignation of co-founder Jerry Yang and Chairman Roy Bostock.

" Scott Thompson's appointment is somewhat puzzling to us given Yahoo!'s effort in the last few years to become more of 'media and content' than a 'pure technology' company," noted Jefferies & Company analyst Youssef Squali, in a research note. "Scott's appointment is indicative perhaps of a change of direction for Yahoo! as it tries to 'return to the forefront of technology innovation', as Scott explained on Wednesday's conference. call."

Squali has an $18 price target on Yahoo!'s shares.

Yahoo! shares were lower Thursday, off 1.39% to $15.56.

For more on Yahoo! shares, see Daniel Loeb's Third Point portfolio.

Interested in more on Yahoo!? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
OPEN $102.95 -0.02%
WBMD $46.89 0.00%
YHOO $44.52 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs