UPDATE: Goldman Sachs Downgrades Youku Tudou to Sell

On Monday, Goldman Sachs downgraded Youku Tudou 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorNewsDowngradesAnalyst Ratings
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!