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All You Need To Know About Ma Stock | ma stock

Yahoo's (NDAQ: YHOO) MA stock is a very interesting part of the online advertising scene. It is the first new name in an already crowded market and has already attracted some notable investors. In early May the company announced that it had raised approximately $50 million in financing, led by Wells Fargo (NYSE: WC) and Citibank (NYSE: CIBC). The money was used to acquire and develop new technology for the business that will be available soon. In addition, Yahoo's current CEO and co-founder, Jack Wilkins stepped down from the role and the company said that it looked forward to adding another high caliber CEO to take on this important role.

Now, I want to discuss the current situation and outlook for Yahoo! MA. The company is probably in a transition period, with the new management team taking over and a broader market focus as well. To break down the current business performance in terms of revenue, I'll compare the current bottom line to the broader market averages of the last 6 years:

The current price near the bottom compared to the market average is very low. This is an indicator of strength in the company. If you were to calculate the multiple lines of equity from the bottom to the top and looking at the current price, you would find that it is quite similar to the overall stock price across the entire spectrum of the industry. This indicates strong financial health despite the tough market.

Yahoo! The consolidated figure below compares the current price near the March bottom to the overall stock price across the broader market during that same period:

The key difference in the data set is the inclusion of a very important new investor, namely Mastercard Inc, which had only a small stake when it became part of Yahoo! The new investor, who bought 100 million shares at the start of the year, has already made a substantial profit. The same is true for the mutual funds owned by Yahoo! Finance. These investments by these two powerful forces represent the primary drivers behind the strong performance of Yahoo!

Expanding out a little further, the relative strength index now indicates strong activity in Yahoo! Finance as compared to other parts of the family. If we look at the historical performance of the index over the past two decades, we can see that the relative strength rating is generally higher than normal. The fact that the price action was quite chaotic in the first half of this decade is clearly evidence of the difficulty encountered by many early investors in finding good high quality opportunities in the digital media industry. Given that the vast majority of early investors did not find the same high quality opportunities as they found in the early nineties, this gap in performance between Yahoo! Finance and the rest of the family of digital media mutual funds is likely to continue.

In conclusion, we note that the recent announcements by Mastercard and Visa confirm our previous analysis. Mastercard's acquisition of XOOM and Visa's acquisition of VISA are excellent signal that the consumer spending slowdown is hitting home. Further, the Mastercard-Visa combination is the largest acquisition in the last two decades, demonstrating the scale of the consumer spending slowdown. When we add the underwriting gain that Visa and Mastercard have experienced on their joint venture, we can see that the consumer spending slowdown is exerting upward pressure on all market segments except for the highest end products. When we add the fact that the credit cards industries continue to grapple with problems associated with delinquency and default rates, we suggest that the recent burst of consumer spending is here to stay.

Looking at the financial results, we believe the Mastercard Visa combination will experience lower transaction volumes as a result of lower pricing due to the competitive landscape. This, in addition to the fact that Visa's card will gain access to more countries and card members, should mitigate the impact of the Mastercard acquisition. However, we note that Mastercard expects its North America markets to experience revenue growth versus earnings growth in Asia. Finally, we note that Mastercard's and Visa's business card brands are the most profitable in the industry. Thus, the combined companies will continue to strengthen their foothold on the global card market, driving consumer demand and higher revenues for both companies.


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