Yahoo Reiterated 'Hold' At Deutsche Bank On Deteriorating Business
Wednesday, January 25, 2022 1:25 PM

Deutsche Bank reiterates its "Hold" rating on Yahoo! Inc. (NASDAQ: YHOO), saying the Internet company posted in line fourth-quarter revenue & slightly better profits.

Yahoo's new CEO Thompson takes the hot potato while business deteriorates. Thompson has yet to provide a vision on which way to go to turnaround the business, DB said.

"Fundamentally, business is deteriorating entering '12 (offset by a small acq.) and it seems like Yahoo! is falling behind in desktop display, mobile/tablet Internet consumption & usage/rev growth - thus, re-investment is needed," the bank wrote in a note to clients.

The bank sees downside to shares if the company cannot meet elevated expectations.

Shares of Yahoo fell 0.86 percent to $15.56 at 1.20 pm EST on Wednesday.