Renewed Focus On Content To Help YHOO
Analysts at First Global reinitiate coverage of Yahoo! Inc (NASDAQ: YHOO)(FREE stock trend analysis) with a "market perform" rating.
According to First Global, the growth in broadband access and internet penetration would help Yahoo! expand its user base, increase traffic volumes and drive the growth of advertisement revenues. YHOO has been rationalizing its product offerings for the past few months.
Yahoo! has entered into a search deal with Microsoft (NASDAQ: MSFT)(FREE stock trend analysis) to improve its search effectiveness and increase market share with the help of MSFT’s superior search technology. YHOO will be able to invest the funds from reduced infrastructure costs on content, mobile services technology and display advertising. The company’s near-term outlook remains grim due to weak online ad revenues, First Global adds.
