) is poised to gain significantly from its integration with Yahoo's
) HotJobs. The trend is evident from Monster's Q2 earnings results,
which reported revenue growth of 25%. We see HotJobs as a key
driver to revive traffic and job bookings for the company in 2011,
which was marred by operating losses last year. Monster
competes in the online job search market with niche players
like careerbuilder.com and jobcentral.com and faces growing
competition from social networks like LinkedIn (
), Facebook and Craigslist.
We currently maintain a near
$13 price estimate for Monster stock
, which is about 15% above the current market price.
Yahoo's Impact: Traffic, Traffic and more
A simple look at the numbers shows the potential impact Yahoo
can have on driving traffic for Monster's web portal. According to
comScore, unique visitors to Monster's Career Ad Network (CAN)
stood at around 77.9 million for June 2011 while the same number
for Yahoo! sites was around 178 million.
Additionally, the HotJobs acquisition which was announced in
mid-2010, has completed a full integration with Monster that
includes a traffic sharing agreement where Monster will provide
content for the jobs content on Yahoo's home page.
This provides Monster with added scale of traffic and bookings,
which will benefit from Monster's arsenal of new and existing job
search tools such as Power Resume Search (
) and its 6Sense® cloud-based search tool. Given that Monster has
successfully cut back operating expenses in its international
career services, we might well see Monster's international business
overtake its North American counterpart as the biggest contributor
to Monster's stock value by the end of this year.
See our complete analysis for Monster