Momentum Stock Watch: Yahoo! Inc. (YHOO)

Company Profile:

Yahoo! Inc. (Yahoo), along with its subsidiaries, is engaged in digital information discovery. The Company focuses on informing, connecting and entertaining its users with its search (Yahoo search), communications, including Yahoo Mail and Yahoo Messenger, and digital content products, including Tumblr, and its four verticals, such as Yahoo News, Yahoo Sports, Yahoo Finance and Yahoo Lifestyle. Yahoo Search is a search engine that serves as a guide for users to discover the information on the Internet. Yahoo Mail connects users to the people and things across mobile and desktop. Yahoo Messenger is an instant messaging service that provides an interactive and personalized way for users to connect and communicate in real-time. The Company’s Digital Content offerings include Tumblr, its social platform, and its four verticals, including News, Sports, Finance and Lifestyle. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California.

Recent News:

Yahoo reported GAAP search revenue was $703 million for the third quarter of 2016 compared to $516 million for the third quarter of 2015.

On July 25, 2016, Verizon Communications Inc.and Yahoo! Inc. announced they have entered into a definitive agreement under which Verizon will acquire Yahoo’s operating business for approximately $4.83 billion in cash.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

YHOO’s strengths can be seen in its strong growth compared with its peers. Technical indicators signal the bullish signs, as MACD goes green, there is a bullish cross in Stochastic Oscillator and RSI stands at 56.49 with positive bias. We rate Yahoo! Inc. (YHOO) a STRONG BUY.