Why Yahoo! (YHOO) Is Down Today

NEW YORK (TheStreet) -- Yahoo!  (YHOO) fell 3.01% to $39.99, down from its previous close of $41.23, at the close of the trading day on Monday after news broke that the company's recent malware attack may have been worse than previously thought.

Yahoo! posted on its HelpCenter site on Friday that a small number people outside of Europe, where the bulk of the attack took place, could have been affected by the attack. Yahoo! also stated that the issues took place between Dec. 27, 2013 and Jan. 3, 2014.

More than 2 million PCs may have been put at risk and some Yahoo! users may have had their personal information put in jeopardy. Those who used Yahoo! Web sites or services such as Yahoo! Mail and Yahoo! IM may have been hit with the malware through the Yahoo! ad network. The company has since addressed the problem.

On Monday, Yahoo! hit a high of $41.22 and a low of $39.80 and amassed a volume of 16,041,243, shares, less than its average volume of 17,131,500. The stock has a one-year high of $41.72 and a one-year low of $19.25.

TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of B-. The team has this to say about its recommendation:

"We rate YAHOO INC (YHOO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, YHOO's share price has jumped by 111.69%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, YHOO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for YAHOO INC is currently very high, coming in at 83.56%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.04% is above that of the industry average.
  • YHOO, with its decline in revenue, underperformed when compared the industry average of 9.1%. Since the same quarter one year prior, revenues slightly dropped by 5.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • YAHOO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, YAHOO INC increased its bottom line by earning $3.28 versus $0.82 in the prior year. For the next year, the market is expecting a contraction of 55.3% in earnings ($1.47 versus $3.28).
  • You can view the full analysis from the report here: YHOO Ratings Report

More from Markets

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Canopy Growth Lets Down Eager Pot Investors; PayPal Keeps Dominating -- ICYMI

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Dow, S&P 500 and Nasdaq Tumble After Trump Calls Off North Korea Summit

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers

Automakers Slump as Trump Tariffs Threaten Both Manufacturers and Consumers