This Day On The Street
Continue to site
ADVERTISEMENT
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

5 Investment Ideas From Wall Street: Jan. 26

5) Don't Touch Yahoo!!

Little has changed in investors' perception of Yahoo (YHOO - Get Report) after the company's lackluster earnings announcement earlier this week. The new CEO, Scott Thompson, didn't mention any new strategic plans. And, the company said zilch about a possible sale of its Asian assets during the post earnings conference call.

The company's income came in line with expectations, although revenue was a little light at $1.17 billion. Clearly, attempts to cut costs and hold market share in display advertising aren't working. Yahoo continues to fade against rivals Facebook and Google.

Credit Suisse says it's taking a "wait-and-see approach" with Yahoo. The firm lowered its fiscal year 2012 earnings estimate "to reflect a 5% reduction in net revenues given macro-uncertainty and the potential for market share pressure and lower margins owing to dilution from the Interclick acquisition and possible reinvestment spending."

Jefferies has a hold rating on the stock, writing that in the "short term, the stock should continue to meander with news flow about Asian assets' monetization; longer-term, increased investments may re-accelerate growth, but such an outcome is far from certain."

"Yahoo's results indicate sustained market share losses with no sign of a turnaround," write analysts at Benchmark.

At this point, it seems that shareholders' only hope for Yahoo is that it will restructure the Asian assets to unlock value. But given the complexities in taxes involved in a potential deal, investors shouldn't expect groundbreaking developments on that process any time soon.

-- Written by Chao Deng in New York.

>To contact the writer of this article, click here: Chao Deng.

>To follow the writer on Twitter, go to: @chao_deng

>To submit a news tip, send an email to: tips@thestreet.com.

5 of 5

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!
SYM TRADE IT LAST %CHG
DKS $56.49 2.19%
MGA $53.46 -0.32%
LEA $115.74 1.79%
TRW $105.08 0.16%
YHOO $44.66 0.46%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs