If you only listened to outside investor pundits or activist investors in the financial media, you might be tricked into thinking that Yahoo! Inc. (NASDAQ: YHOO) is on the brink of implosion. You might also get tricked into thinking that CEO Marissa Mayer hasn’t done anything or tried to do anything, or that there is just no real value to the company. Well, despite all the woes and criticism, some people still think there is a lot of value left in Yahoo!
It turns out that many analysts on Wall Street still see really big upside here. Some of the analysts trimmed their price targets after the most recent earnings report. Still, many of them see Yahoo worth $40.00 or more. And the lowest price target from all analysts is still above the current share price, now that the stock is down from its highs so much. It also turns out that not everyone wants Mayer out as CEO.
Despite the media telling you that nothing happens on the desktop personal computer (PC) any longer, the reality is that the desktop is not the future of growth — but don’t count out all those people at work with big screens and all the people with home-based offices just yet. There are just some serious limitations to how much media and information some of us want to consume from our smartphones and from tablets.
24/7 Wall St. wanted to look at both sides of the case with Yahoo. This is not meant to be an article that Yahoo shares are only very undervalued, nor that the stock will instantly rise back from the $28 level to much higher. The stock market is an odd bird, highly driven by sentiment. Any market panic or continued negative sentiment could lead Yahoo shares lower. Still, the analysts and many investors think Yahoo! is worth a lot more than its current price. Two sides to a story.
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