Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Merrill Cuts Yahoo! to Sell

Merrill Lynch cut Yahoo! (YHOO) to near term reduce/sell from neutral; and to long term neutral from strong buy.

Analyst Justin Baldauf says at first glance, Yahoo!'s second quarter results appear solid: better than expected results and raised estimates. Hence, he raised his $0.12 2002 earnings per share estimate to $0.13, and upped the $0.17 2003 estimate to $0.18.

However, revenue growth is driven entirely by new initiatives -- not Yahoo!'s core online advertising business, which fell 19%. Baldauf says the increased guidance seems driven entirely by an extension of the Overture merger deal. Once new initiatives are "anniversaried," Baldauf says he thinks they will drive much slower rates of year-over-year growth.

He doesn't think the compnay's fundamentals support valuation; he says a more reasonable valuation is $9-$10.

blog comments powered by Disqus