Watching YHOO today

Monday, April 21, 2008

Yahoo!: Q1 preview - Needham (28.03 )

Needham says YHOO reports 1Q08 results tomorrow. Firm believes mgmt's guidance for 1Q08 and CY08 appears reasonable, and that their ests remain in-line. While the recent GOOG results are encouraging for YHOO, firm notes that i) YHOO has a much larger exposure to premium display advertising than GOOG, ii) that GOOG has benefited from share gains of late, iii) that results from the two cos have had little correlation in recent quarters, and iv) that GOOG generates more rev from international ops than YHOO. Firm believes in-line results and either a maintaining or increasing of CY08 guidance will provide YHOO mgmt with further proof that it is executing toward its three-year financial plan.