Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Internet giant Yahoo! Inc. (YHOO - Analyst Report) recently announced its plans to expand in La Vista, Nebraska. Through this initiative, Yahoo plans to create 100 new jobs across customer care, integration and logistics.

Yahoo is trying to build a highly efficient customer care team. Of the 100 new jobs, 75 will be dedicated to customer service and the rest will work in areas such as logistics at Yahoo’s factory where servers are assembled and shipped to other locations. Other than La Vista, Yahoo’s other customer care centers are located in Lockport, NY and Quincy, WA. Currently, Yahoo employs 350 people in Nebraska.

The expansion forms a part of a strategy where Yahoo is bringing back outsourced jobs to the U.S. This might work in Yahoo’s favor as the current administration is trying to stop outsourcing to countries such as India, Indonesia and Taiwan, among others. It is possible that Yahoo might get the benefit of tax breaks or tax holidays to bring back jobs to the U.S.

We are positive about Yahoo, as its search business continues to show signs of improvement, even in the face of tough competition from Google and Microsoft (MSFT - Analyst Report). We are also encouraged by the refocusing initiatives of the company, as well as the many product upgrades and growth initiatives, which are improving engagement on Yahoo properties.

In the third quarter of fiscal 2012, Yahoo generated revenues of $1.20 billion, which were down 1.3% sequentially and 1.2% year over year. Traffic acquisition cost (TAC) was down 17.7% sequentially and 22.2% from last year. Excluding these costs in all periods, net revenue was essentially flat on a sequential basis and up 1.6% from last year, in line with the consensus estimate.

Yahoo has a Zacks Rank #1 (Strong Buy). Other technology stocks that are worth considering include Linear Technology Corp. (LLTC - Analyst Report), ON Semiconductor Corp. (ONNN - Analyst Report) and Intersil Corp. (ISIL - Snapshot Report), all carrying a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
KNIGHTSBRIDG VLCCF 13.95 +11.24%
QUESTCOR PHA QCOR 82.95 +3.60%
BIO PATH HOL BPTH 2.69 +3.46%
E*TRADE FINA ETFC 22.08 +2.70%
LAKE SHORE G LSG 0.79 +2.46%