Yahoo Discloses Traffic Stats To Smooth Over Investors' Data Breach Concerns
Credit Suisse said in a research note released on Tuesday that Yahoo! Inc. (NASDAQ: YHOO) released traffic statistics to show no material drop-off in traffic for now, attempting to quell investor anxiety concerning the now highly publicized data breach.
Hack Attack And Repercussions
In September, Yahoo divulged that hackers stole information pertaining to at least 500 million user accounts in 2014, which is supposedly the largest data breach in the history of the Internet.
Analyst Stephen Ju sees unanswered questions on whether Verizon Communications Inc. (NYSE: VZ) will renegotiate the terms of its deal to buy Yahoo's web assets in the wake of the revelation of the breach. The $4.83 billion deal was announced in late July.
Since Credit Suisse is unable to predict what the IRS may do, it maintains its Neutral rating and $52 price target on the shares of the company.
Yahoo reported underwhelming third-quarter net revenues, with shortfalls in search and other offset by higher-than-expected display revenues. Earnings per share were ahead of estimates, Credit Suisse noted.
Credit Suisse lowered its 2016 gross revenue estimate to $5.10 billion from $5.12 billion but raised its earnings per share estimate to $0.62 from $0.59.
At last check, Yahoo shares were up 2.23 percent at $42.61.
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