Boston, MA 07/05/2013 (wallstreetpr) – Yahoo!, Inc. (NASDAQ:YHOO) has been one of the stars of the market for the last eleven months since it changed its management, welcoming Marissa Mayer as the Chief Executive Officer. Under her guidance, the company has been rewarded by the market, since it has taken all the right steps and sent the right signals, as the stock posted a 25 percent gain this year and beat the S&P 500 by a significant margin. Since Mrs. Mayer’s arrival, the stock has rallied over 50%, re-affirming the trust key investors show her.
Yahoo! has acquired a lot of small companies last year. The most notable among them was Summly, a news reading app, along with Jybe Inc. & Stamped Inc, mobile application developers. However, the biggest acquisition has been Tumblr, a blogging platform, which cost Yahoo! $1.1 billion in cash. The company expects to increase its audience to 1 billion (or by 50%) and traffic by 20% through this platform. As can be inferred from the company’s previous purchases, the company is focusing significantly on mobile applications, also acquiring Big noggins Productions for an undisclosed sum. It expects to use the technology of the acquired companies for its own applications in the same market segments. All these acquisitions do not have a significant effect on the funds of this cash rich company, as Yahoo! bought Qwiki, Inc. for $50 million, a company that develops apps that create videos on the iPhone.
The non-stop rally in the market, along with these positive steps taken by the company to streamline itself to a more connected and mobile world, could have warranted slightly more enthusiasm from analysts. However, the stock, trading at only seven times its earnings, is not being recommended by many analysts.
