Tumblr: The Trump Card For Yahoo In 2015

Although Yahoo! Inc. YHOO never took a big plunge into social media directly by acquiring Tumblr it did made a start. Now it seems that Tumblr can very well be the engine that drives Yahoo out of the slump it has been witnessing in its core business.

Victor Anthony, Topeka Capital Markets, was on CNBC to discuss the outlook for Yahoo in 2015 and the big opportunity that Tumblr represents.

What Makes You Excited About Tumblr?

“Well, you look at the user stats 420 million users come to the platform on a daily basis, the mobile users are growing to 50%, you see time spent as going to 28 minutes from 22 minutes previously. You see the site over indexes on teens relative to other social media platform. So, I think it’s a strong positive. It also gotten a lot more TV mentions versus a Twitter,” Anthony said.

He continued, “So, I think from a user perspective it’s becoming a more stronger platform, but I think, the big opportunity for Tumblr is really with the video and video ads and I think that will be accelerated with acquisition of BrightRoll, which Yahoo just completed in mid-December.”

Why Market Has Been So Slow In Recognizing Tumblr’s Potential?

“Well, I think it’s an under-appreciated asset. I don’t think anyone really focuses on Tumblr […] I think they should and these are the stats that I point to that I think, investors should pay attention to. They also talk about the fact there are close to 300 advertisers on the platform, they also talked about Tumblr generating close to $100 million in revenues over that in 2015. I personally think, they’ll exceed that with the benefit of BrightRoll,” Anthony added.