Chowdhry: Yahoo Is The Next Terremark Disaster, Deal Is Obsolete

Chowdhry's Take

Global Equities' Trip Chowdhry confirmed the benefits of the deal to Yahoo shareholders, but claimed it was "terrible" for Verizon shareholders. The analyst compared the deal to Verizon's $1.4 billion Terremark purchase, which "ended up in total disaster."

Related Link: This May Explain Why Verizon Wants To Buy Yahoo's Properties

The Next Terremark Disaster

Like many analysts commenting on the Yahoo deal, these pundits were wrong as companies like Amazon.com, Inc. AMZN took control of cloud computing while Verizon took and remained in the back seat, the argument went.

'Yahoo is a Declining Asset Business'

"Basically, we are seeing a replay of the previous movie, VZ buys Terremark, but with a different actor, YHOO replacing Terremark: VZ executives as clueless as they have been with Terremark."

According to TipRanks, Trip Chowdhry is one of the best analysts covering tech with a 60 percent success rate and a +15.6 percent average return per recommendation. Chowdhry rated 332 out of 4081 analysts.

The analyst does not, however, have a formal rating or price target on Yahoo or Verizon.

At the time of writing, Verizon traded at $55.80, down 0.57 percent Monday. Yahoo was seen down 2.69 percent at $38.32.

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