Updated from 1:01 p.m. EST to provide additional analyst comments regarding potential M&A.SUNNYVALE, Calif. ( TheStreet) - Yahoo! ( YHOO) may have finally appointed a new CEO, PayPal president Scott Thompson, but a question mark still hangs over the Internet giant's ability to to monetize its vast audience. Yahoo! has gone through two previous CEOs (Terry Semel, and, most recently, Carol Bartz), neither of whom was able to boost the company's share price. Shares of the Sunnyvale, Calif.-based firm are off 44% over the past five years, whereas Google's ( GOOG) stock has gained nearly 44% over the same period.
|New CEO Scott Thompson will try to monetize Yahoo!'s vast audience where others have failed.|
One area where Thompson may have an immediate impact is Yahoo!'s Right Media online advertising division, Dan Salmon of BMO Capital Markets wrote in a report. He believes that Right Media could help Yahoo! "stem the tide of momentum" the company has lost to Google ( GOOG) in exchange-based, real-time display advertising by bringing in top engineers. Salmon also believes that Thompson's experience in e-commerce could bring a new element to the conversation surrounding the Asian assets. The analyst notes that Taobao, Asia's version of eBay ( EBAY), and Alipay are core parts of Yahoo's Asian interests. He rates Yahoo! shares market perform with a $17 price target.