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Scott Kessler, S&P Capital IQ Internet Equity analyst, on Yahoo! stock and CEO Marissa Mayer’s upcoming conference call to share her plans for t...
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All right well Yahoo! will be reporting third quarter earnings after the bell today CEO Marissa -- expected to make her first appearance and invest -- the -- want to note.
Exactly how she plans to turn the company around for more what to expect I'm joined now by Scott Kessler an analyst.
With the S&P capital IQ.
All right Scott big day -- Marisa man no doubt about it how important is this coal.
Lastly I think it's important obviously.
Look I mean Marisa Mayer has been and place for.
I guess at this point -- a handful of months at this stage.
She apparently already.
Went on -- perhaps sort of came back from maternity leave.
A lot has happened over the last few months I think it's fair to say that.
People want to hear.
Two or three things for -- one.
Is what her kind of broad strategy is to where she's gonna be investing.
Yahoo!'s resources.
And three.
Incrementally what changes she wants to make I think the bottom line is that's kind of a flavor for people want to hear.
Later today.
And the general belief is that she is -- is stated that AM kind of turning around though improving the technology is opposed to media content making it more interactive.
Perhaps simplifying in some ways do you think this is the right approach.
It makes a lot of sense I mean if you think about Yahoo! and the various.
Executives and strategies they've had over the last number of years.
One thing seems a standout and that is that a lot of people think that there are a lot different ways that Yahoo! can do better and we agree.
Com clearly more recently it seems like the focus.
Of of the management team what is the Yahoo! property and media businesses.
Mom and they announced a number of partnerships.
In the April may and June timeframe.
-- build.
What they've already started in that regard I think.
I think Marissa Mayer she really given her background.
-- is get -- after size as you point out the technology platforms.
The products.
Can and ultimately.
The user experience and I think that given her background given her experience.
And frankly -- and her past areas of focus.
These areas make a lot of sense to -- going forward but that was put it you know squarely -- state media.
The Facebook's in the -- rules of the world I mean it's pretty daunting isn't it.
Well authority -- case I mean Yahoo! is already competing -- if and FaceBook -- grew -- a whole host of other.
On Internet companies where you think of them as Internet media company is a war in that platform companies or Internet communications companies I mean.
You get the -- the bottom line yeah -- going toe to toe with a lot of these companies.
So tell us the better approach clearly it's you offer.
And improve product.
That causes -- -- user base to.
Increase and become more engaged I think that's such -- he focused on.
And -- do you have a price target over the next next twelve months of twenty box from -- Trade went around 158616.
Dollars thereabouts do you think it's someone at a distressed level right now.
Yeah I mean we think that looked Yahoo! as the stock is notably undervalued.
-- and the whole host of reasons for that.
You can start with it tremendous global brand and reach and then go all the way down of the balance sheet where they had a couple of billion dollars in cash and investments.
Before.
They sold a significant stake in Alibaba Group and netted about five billion dollars of additional capital -- considerable resource is David change agent and Marisa Mayer and a lot of opportunity we think that value for shareholders yeah I need you mention is silly of wealth that you know -- lot of resource is two point -- -- billion dollars in cash old there abouts how would you like to see Yahoo! use that money.
Well I think number one I think -- judiciously right I mean I think down.
Just because they have considerable capital and resources doesn't mean have to use it.
Our news at all wants.
Secondly I do think though that bomb.
Bring in some new folks in the context of higher profile hires and and even some small acquisitions made perfect sense if you want Yahoo! to be an industry leader you have to bring in the talent to make that happen.
-- it's going to be a very -- coal Lotta people waiting to hear from Marisa Mayer.
We also glad to different Scott Kessler had -- -- capital IQ -- -- you very much thanks lastly take that.
And don't miss Fox Business is extensive coverage of Yahoo! earnings and don't -- results from Texas Instruments sizzle today at full PM eastern time right here.
On after the bell.
Complex have ran a business have a baby answer and I guess -- -- they wouldn't.
