Wieser Has a Hold Rating on Yahoo

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Oct. 14 (Bloomberg) -- Pivotal Research Senior Analyst Brian Wieser discusses hs outlook for Yahoo on Bloomberg Television's "Market Makers." (Source: Bloomberg)

The midst of a turnaround or simply hiding behind its lucrative stake in ali baba?

Our guest is here with analysis.

He joins us from portland, oregon.

I was in portland last week.

I wish we had this condo face to face.

But we are having it now.

What do you expect tomorrow?

Really the focus is on ali baba and whether they will provide the ali baba stake on the call as they did during the last earnings call.

That was a bit of a surprise.

The core business does not matter that much at this point.

Brian, i look atal alibaba and i think you have nailed it.

What is the mystery?

People will say, ryan, this company is worth $150 billion.

They say it is the advertising business, right?

Really?

It is not to say it is not worth a lot of money, but i think the vast majority of investors have no basis for that valuation assessment.

We do not know.

What we have been provided with so far is very limited and i have been very cautious in assigning a value to a company we know very little about.

How will this impact yahoo!? with an ipo on the way, one would think that people will be cracking into what this company actually does.

Exactly.

I think investors will separate the assessments of alibaba, which will probably trade on a multiple of some bases, and their trade of yahoo!

Inc.

Beyond that, i think we will just get a lot of extra color from the ipo about some drivers of the business, about some other revenue factor.

We look at amazon, no profit, but a great believes and hopes and dreams or the future.

Then something like apple generating massive cash.

Where is yahoo!

In that continuum?

I do not -- when we look at yahoo!, the advertising business, it is in a much weaker place then either amazon or apple.

Both those companies are very well positioned to continue dominating what they do.

Yahoo!

On the other hand, well once the dominant player in online advertising, is so far away from that at this point in time.

That is just the function of commoditization at this point in time.

Is marissa mayer the right person to lead this charge?

Well, i think we can give it a little bit more time still.

It has been very clear they have gone with the strategy of focusing on consumers.

It was not clear from the outset they were making the right connection between consumers and advertising.

In other words the focus was entirely not -- on consumers and not on advertising.

It sounds like.

It may be too little too late.

But with luck, they will build business ahead that has nothing to do with advertising.

Ryan, you think that yahoo!

Is -- brian, you think that yahoo!

Is the single best to hold?

I think the valuation is really solid on both of these companies and not too far upside.

Right.

Always smart.

Always smart.

Thank you so much.

Brian weiser, senior analyst at

This text has been automatically generated. It may not be 100% accurate.

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