Market Overview

Yahoo Better Answer These 10 Questions In Tuesday's Earnings Call

Yahoo Better Answer These 10 Questions In Tuesday's Earnings Call
Related YHOO
Jim Chanos Is Still Bearish On Alibaba
Telecomms: The Most Interesting Sector Going Into Earnings
FCC Expected To Adopt 'Opt-In" Privacy Rules AT&T, Comcast Oppose (Investor's Business Daily)
Related BABA
From Amazon To Chipotle, Here's A Look Into College Students' Favorite Stocks
Todd Gordon's Alibaba Options Trade
Vipshop Reportedly Pays Up To $59M For Third Party Payment License (Seeking Alpha)
  • Yahoo! Inc. (NASDAQ: YHOO) declined 32.92 percent over the past year, ending January 29 at $29.51.
  • Robert S. Peck of SunTrust Robinson Humphrey has maintained a Buy rating and price target of $40 on the company.
  • With the company scheduled to report its 4Q earnings on February 2, Peck listed the top questions that investors would like management to address during the call.

Analyst Robert Peck stated that the first question management should address is whether Yahoo intends to actively pursue the sale of its core, while mentioning that a sale would be “the quickest way to separate and monetize the core.”

Peck said investors were also interested in knowing whether the company had received interest in its core business that would preclude management from considering those parties.

According to the SunTrust report the third question is, "How are the CEO’s relations with Alibaba Group Holding Ltd (NYSE: BABA) and SoftBank and who is liaising with them for the company now that Jackie Reeses has left? Is there interest in a cash rich tax free split?"

Related Link: Google, Yahoo And LinkedIn: Who Can Beat Earnings Expectations?

Investors would also like to know why the core spin process is expected to take such a long time and what could be done to speed up the process. Investors would also like to know whether the spin could be done simultaneously with pursuing a sale of the core.

Given the recent departures from Yahoo, investors have expressed concern whether the right executives and leadership is in place and what the company intended to do to ensure this.

Some of the other questions that investors would like answers to are related to employee base and cost cuts, monetization of non-core assets, growth initiatives, employee stability and morale, customer messaging and retention, and capital returns.

Latest Ratings for YHOO

Oct 2016JefferiesDowngradesBuyHold
Oct 2016NeedhamDowngradesBuyHold
Oct 2016MKM PartnersMaintainsBuy

View More Analyst Ratings for YHOO
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Previews Reiteration Top Stories Analyst Ratings Tech Trading Ideas Best of Benzinga


Related Articles (YHOO + BABA)

View Comments and Join the Discussion!