Yahoo shares dive
Thursday, 22 July 2010
NEW YORK, Jul 21 (AP): Shares of Yahoo Incorporation tumbled in pre-market trading Wednesday after second-quarter results showed tepid revenue growth.
"Yahoo is still a work in progress," Jefferies & Co. analyst Youssef Squali told investors in a note.
Squali still has a "Buy" rating on Yahoo shares but told clients "it will require patience for the stock to work in the end."
The turnaround effort at Yahoo led by CEO Carol Bartz showed signs of stalling in the second quarter.
Cost cutting helped lift Yahoo's earnings more than 50 per cent to $213 million. But revenue grew only 2 per cent to $1.6 billion - well below the 24 per cent growth that rival Google Inc. booked last week.
Yahoo will have to improve performance to keep its shares from lagging behind its rivals, FBR Capital Markets analyst Heath Terry said in a note.
He kept an "Underperform" rating on the stock and cut his price target to $15 from $18. Yahoo shares fell $1.01, or 6.6 per cent, to $14.19 ahead of regular trading.
"Yahoo is still a work in progress," Jefferies & Co. analyst Youssef Squali told investors in a note.
Squali still has a "Buy" rating on Yahoo shares but told clients "it will require patience for the stock to work in the end."
The turnaround effort at Yahoo led by CEO Carol Bartz showed signs of stalling in the second quarter.
Cost cutting helped lift Yahoo's earnings more than 50 per cent to $213 million. But revenue grew only 2 per cent to $1.6 billion - well below the 24 per cent growth that rival Google Inc. booked last week.
Yahoo will have to improve performance to keep its shares from lagging behind its rivals, FBR Capital Markets analyst Heath Terry said in a note.
He kept an "Underperform" rating on the stock and cut his price target to $15 from $18. Yahoo shares fell $1.01, or 6.6 per cent, to $14.19 ahead of regular trading.