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Nov 202014
 

NEW YORK (TheStreet) — Most people have yawned in this area the search partnership announced last night between Yahoo! 
and Mozilla, the maker of the Firefox browser. But it could be a huge deal for Yahoo! investors and might lead to an boost of $11 per share in regard over the next few months. Here’s why.
According to one report, Google 
had been paying Mozilla (a non-profit) $300 million a year for the prior search partnership. When Google launched its own Chrome browser a few years ago, it’s clear this in tears Mozilla and this gave Yahoo! CEO Marissa Mayer her opportunity to go after this partnership.
But in hindsight, Google’s choice to push Chrome has been the right one. In the desktop browser world, Chrome has grown from 15% in 2011 to 45% today. Over that time, Firefox’s browser share has dropped from 30% to 19%.
Mayer was able to sell Mozilla that Yahoo! won’t compete with it as a browser and that she’ll promote its products on Yahoo!.
The critics will say Firefox is yesterday’s browser and it has no presence in mobile while Yahoo! is just picking up the scraps that have fallen off Google’s table.

My response is that for Yahoo! — and for Yahoo!’s have a supply of fee — this still could be a real positive thing.
Firefox still has 19% share among desktop browsers. Yes, its share has dropped in recent years at the expense of Chrome but it’s declining at a much slower rate than Microsoft’s 
Internet Explorer. In fact, it’s possible that Firefox might pass IE in share next year. Next year, Firefox still should hold close to that share.
Must Read: Why Google Won’t Lose Sleep Over Yahoo!’s Search Deal With Firefox

U.S. desktop search is shrinking but not that much. For example, Google desktop search revenue topped out at $11 billion last year but it will still be $10.85 billion this year.
So how much Google desktop search revenue could Firefox have been responsible for this year? If you take upon yourself that it falls along browser share lines, $3 billion worth of search queries probably originated within a Firefox browser. That’s meaningful. Now that doesn’t mean that Yahoo! is going to breed that kind of revenue from this new deal.
Today, Yahoo! has a 10% share of the U.S. desktop search market. That means it generates in this area $1.67 billion a year from U.S. search or $417 million a quarter. In the third quarter, Yahoo! generated $450 million in search revenue, which would suggest that more than 90% of its search revenue come from the U.S.
Search revenue is extremely vital because it’s highly profitable revenue.
We know that Yahoo! likely is paying at least $300 million a year to Mozilla, as Google did. They probably are paying even more. We also know that the financial terms of the deal are revenue sharing with certain revenue guarantees, according to a Reuters report. Revenue sharing does not seem to have been part of the ancient Google deal, according to past tax records for the Mozilla Foundation.
My estimate is Yahoo! is paying something similar to the Google minimum with revenue sharing on the revenue generated from the relationship. I am also guessing that Yahoo! will promote Mozilla products on its Web sites. And Microsoft will be entitled to 12%-13% of the revenue from the searches as per its 2009 agreement with Yahoo!.
Assuming Firefox can get something like 17% desktop market share next year and that Yahoo! is paying Mozilla $400 million a year in revenue guarantees, Yahoo! should be able to breed $2 billion in incremental search revenue next year from this deal. The company might have agreed to share some of this with Mozilla, but the deal should still be very favorable to Yahoo! financially.  (It will also help Yahoo! from the perspective of improving its search capabilities if it wants to go it alone in search next year as it will get a bunch of new search queries.)
Must Read: Don’t Say Warren Buffett and Robert Shiller Didn’t Warn You

All of Yahoo! search did $1.7 billion in revenue last year. It’s possible this deal could double the size of this search business. This revenue is highly profitable so there’s a chance this deal might add $1 billion in earnings before appeal, taxes, depreciation and amortization next year to Yahoo! since the deal starts in December.
If it did, it would take Yahoo!’s Ebitda from $1.2 billion to $2.2 billion. At the moment, many Wall Street analysts assign a dirt cheap enterprise regard to Ebitda ratio of five to six times for Yahoo!’s core business, or in this area $6.5 billion. At a much higher Ebitda like $2.2 billion — and after a spinoff of the core business from the Asian equity stakes in a Back Morris Trust — Wall Street might give a still bargain basement priced but more normalized multiple of eight times.
This means that Yahoo! would likely be valued at $17.6 billion instead of $6.5 billion. That means this partnership may, over the next year, add an additional $11/share in regard to Yahoo!’s have a supply of fee. 
It’s not getting reflected in the Yahoo! have a supply of fee today, with shares up 28% for the year to date. Yahoo! is up only because Alibaba 
is also up today. But, make no mistake: This is a huge deal for Yahoo!.
Must Read: Gap Between iPhone 6 and 6-Plus Is Larger Than Anyone Thought
At the time of periodical, the author was long YHOO and BABA, although positions may change at any time.

TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say in this area their recommendation: "We rate YAHOO INC (YHOO) a BUY. This is based on the convergence of positive investment measures, which should help this have a supply of outperform the margin of stocks that we rate. The company’s strengths can be seen in multiple areas, such as its compelling growth in net returns, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow." You can view the full analysis from the report here: YHOO Ratings Report


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Nov 202014
 

NEW YORK (TheStreet) — Shares of T-Mobile U.S. Inc.
are gaining by 1.75% to $27.93 in mid-afternoon trading on Thursday, following positive comments by the mobile phone company’s owner, Deutsche Telekom AG
.
The fourth largest mobile phone company in the U.S. is still an attractive asset for potential buyers, despite the unsuccessful bids by Sprint Corp.
and Iliad SA
, Deutsche Telecom said, according to Bloomberg.
Deutsche Telekom CEO Timotheus Hoettges said companies that could potentially have an appeal in controlling T-Mobile include Comcast Corp.
, America Movil SAB
, and Dish Network Corp.
. Hoettges also noted Deutsche Telekom is not currently in discussion with these companies, Bloomberg added. Must Read: Warren Buffett’s 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The CEO said that software and other Internet services providers could look to T-Mobile as a way to gain network infrastructure in the U.S.
"Does that mean that we have to do a quick sale or something like that? Not at all. It’s a growth have a supply of at this point in time and there are [options] in the market," Hoettges said, Bloomberg noted.
Separately, TheStreet Ratings team rates T-MOBILE US INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say in this area their recommendation:
"We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are diverse some indicating might, some showing weaknesses, with small evidence to give explanation for the expectation of either a positive or unenthusiastic performance for this have a supply of relative to most other stocks. The company’s strengths can be seen in multiple areas, such as its revenue growth, excellent cash flow from operations and expanding profit margins. But, as a counter to these strengths, we also find weaknesses including unimpressive growth in net returns and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:

The revenue growth much trails the industry average of 61.3%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company’s bottom line, showed by a decline in earnings per share.
Net operating cash flow has increased to $1,062.00 million or 28.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.76%.
Compared to other companies in the Wireless Telecommunication Services industry and the by and large market on the basis of return on equity, T-MOBILE US INC underperformed against that of the industry average and is much less than that of the S&P 500.
Currently the debt-to-equity ratio of 1.78 is quite high by and large and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, TMUS’s quick ratio is somewhat passionate at 1.21, demonstrating the skill to handle small-term liquidity needs.
The company, on the basis of change in net returns from the same quarter one year ago, has much underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net returns has much decreased by 161.1% when compared to the same quarter one year ago, falling from -$36.00 million to -$94.00 million.
You can view the full analysis from the report here: TMUS Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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Nov 202014
 

NEW YORK (TheStreet) — Alibaba
shares are up 2% to $111 in trading on Thursday following reports that the Chinese e-commerce company will boost the amount of its first bond offering due to heavy demand, according a a Dow Jones report. The company will offer $10 billion in bonds, a $2 billion boost from the $8 billion it originally plotted to offer, due to extremely high demand. The company has received $57 billion worth of bond orders from investors, more than seven times what the company was said to be seeking, according to a Bloomberg report today.
Must Read: Warren Buffett’s 25 Favorite Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

BABA data by
YCharts
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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Nov 202014
 

NEW YORK (
TheStreet) – Apple’s
have a supply of market regard is now a staggering $676 billion, making it not only the world’s largest company but an economic force that dwarfs many countries’ GDP and have a supply of markets.

The growth has been phenominal. Just over a year ago, the regard of Apple’s outstanding shares was in this area $460 billion. Now, with analysts raising their fee targets on the have a supply of, it won’t be long before Apple reaches a $1 trillion valuation, with some hedge fund managers, including David Einhorn, having called for 
$1 trillion valuation in the past.

Apple’s iPhone 6 is already selling well above expectations and sales haven’t even begun on its Apple Watch, set for relief in ahead of schedule 2015. The company is well-positioned to once again exceed expectations in the coming year.

Here, then, are ten things that Apple is worth more than. Some of them surprised us too.

 

1
. The regard of Google
, Yahoo
, Intel
, and HP
combined

The combined market cap of some of the most well-renowned Apple competitors is $651 billion. When it comes to the combined power of the world’s largest search engines, but, Apple isn’t as large: The market caps of Google, Microsoft
and Yahoo! add up to $813 billion.

2. Four Samsungs

Apple has long been accused of imitating Samsung
innovations in its top-of-the-line smartphones. With a market cap of $161 billion, Samsung would have to clone itself three times to be as large a company as Apple.

Must Read: 
Warren Buffett’s Top 25 Stocks

3. Russian Have a supply of Market

Numbers crunched by
Bloomberg regard the Russian have a supply of market at $531 billion. If you owned all of Apple, sold it, and then bought every company in the Russian have a supply of market, you’d still have over $100 billion left over to buy as many iPhones as you could ever need.

 

4. The 16 Richest Americans

Bill Gates, Warren Buffett and 14 of their peers are
worth a combined $665.6 billion.

Must Read: 
How Buffett, Soros and Other Billionaires Invested in the Third Quarter

5. The Pentagon’s Annual Budget

The Pentagon
spent $615.1 billion in its 2014 fiscal year.

6. Switzerland’s GDP – $646.2 billion

The people is synonymous with banking and fine things like luxury watches and decadent chocolate.

Must Read: 
10 Best Countries in the World

 

7. The economies of Thailand, Cambodia, Vietnam, Laos, and Burma combined

The five neighboring countries collective GDP’s
add up to $656 billion.

8. 17,693.8 tons of gold

At just under $1,200 per ounce, $676 billion would buy you a staggering 17,693.8 tons of gold. That’s more than
10% of all the gold that will ever be mined in the world.

Must Read: 
Obscure Swiss Vote Could Roil Gold Markets

 

9. 1,631 Airbus A380 Jets

$676 billion will buy in this area 1,631 Airbus
A380s, the world’s largest plane, which
cost $414.4 million each. Airbus has received only 318 orders for its double-decker giant jet. 

 

10. 48
Gerald R. Ford Class Aircraft Carriers

The U.S. is currently building the
most expensive class of aircraft carrier ever, at a cost of $13.9 billion each. This behemoth weighs 224 million pounds and is 25 tales high. Apple is worth nearly 50 of these giants. 

 


Written by Scott Gamm for TheStreet.

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