Yahoo! (YHOO) Stock Dips Despite New Security Measures

NEW YORK (TheStreet) -- Yahoo!  (YHOO) dipped 2.14% to $35.85 at 1:08 p.m. on Thursday despite the company's announcement that it would take steps to increase its security to prevent surveillance.

Yahoo! announced it had encrypted online traffic among its data centers, along with emails that used its servers, since the end of March. Furthermore, the company said it would release an encrypted version of its Yahoo! Messenger service in the next few months.

"Hundreds of Yahoos have been working around the clock over the last several months to provide a more secure experience for our users and we want to do even more moving forward. Our goal is to encrypt our entire platform for all users at all times, by default," said Yahoo! chief information security officer Alex Stamos in a post on the company's blog on Wednesday.

Yahoo! CEO Marissa Mayer announced the company's plans to encrypt all of its products in the wake of news that the NSA had been intercepting user data from tech companies, including Yahoo!, without their knowledge.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates YAHOO INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their 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, increase in net income, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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