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UPDATE: Goldman Sachs Downgrades Youku Tudou to Sell

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On Monday, Goldman Sachs downgraded Youku Tudou (NASDAQ: YOKU) from Neutral to Sell. Piyush Mubayi, analyst at Goldman, said the “valuation appears stretched on a sector-relative basis.”

Mubayi noted mobile monetization has been slow to catch up to rapid traffic migration from desktop to mobile. The analyst continued, “current mobile ad load is substantially lower than desktop (~15 seconds pre-roll on mobile, relative to ~60 seconds on desktop.”

“Youku Tudou recorded 40 percent of traffic from mobile, but this contributed to only 6 percent of revenues,” and “the gap is gradually being narrowed by higher budget allocations on mobile by advertisers,” said Mubayi.

Shares of Youku Tudou are currently trading just above the $30 figure, down 2.5 percent Friday's close.

Latest Ratings for YOKU

DateFirmActionFromTo
Apr 2015Summit ResearchInitiates Coverage onHold
Mar 2015Deutsche BankDowngradesHoldSell
Mar 2015Brean CapitalMaintainsBuy

View More Analyst Ratings for YOKU
View the Latest Analyst Ratings

Posted-In: Analyst Color News Downgrades Analyst Ratings

 

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