Yahoo! Inc. (NASDAQ:YHOO) shares haven’t been moving much in recent weeks. In the last five days, the company’s stock has lost a fraction of its value, while the last month has seen anemic gains of just 1 percent. With the energy behind the firm in the first half of the year apparently dissipating, the company’s Chief Financial Officer Ken Goldman is teasing a share buyback.
A Citigroup Inc. (NYSE:C) report on the company centers around Goldman’s take on Yahoo! Inc. (NASDAQ:YHOO) financials and the future of the company. According to the analyst Mark May, who authored the report, Goldman continues to like the idea of a share buy-back at the tech giant.
Reputed short-seller Spruce Point Capital Management released its latest short report this week. The firm is shorting Canadian dairy and grocery manufacturer Saputo. Spruce Point chief Ben Axler believes the company is entering a phase of declining growth and highlights the financial stress and growing challenges he sees it facing, not only in Canada but Read More
Yahoo! expanding revenue
According to the Yahoo! Inc. (NASDAQ:YHOO) CFO there are many new revenue streams due to come online in the next year. Goldman told the Citigroup Inc. (NYSE:C) analysts that real revenue numbers from its Tumblr business will be a CY14 event. There are encouraging trends at the Yahoo! Inc. (NASDAQ:YHOO) photo sharing site Flickr as well.
Ali Baba, the Chinese search giant, is a massive business opportunity for Yahoo! Inc. (NASDAQ:YHOO), but the company hasn’t quite worked out how to use it yet. According to Goldman, the company is trying to find a way to monetize the Chinese web service in a tax efficient way.
Revenue expansion is what investors really want to see at Yahoo! Inc. (NASDAQ:YHOO). The company really needs to prove its ability to grow in new areas, rather than guard its dying business. The firm has many revenue-generating opportunities in place, but the overall strategy constantly referenced has not yet become clear.
Yahoo getting people in place
Yahoo! Inc. (NASDAQ:YHOO) is concentrating on getting the right people and properties in place in the right markets before it starts to really push its new strategy. No details about the company’s future focus were given by Goldman, but some major trends were made clear by the executive.
Yahoo! Inc. (NASDAQ:YHOO) is going to push its Web Portal business into the twenty-first century by aggressively acquiring content and enhancing the video and rich media capabilities of its platform.The firm is also going to aggressively expand into mobile applications in the coming year.
A share buyback might be just the thing for a cash rich Yahoo! Inc. (NASDAQ:YHOO) to pacify investors as it heads into a period of difficult growth. Yahoo earnings may be depressed for several quarters to come because of the revenue push. The company may need something to keep investors excited about the company.