New Announcements from Yahoo at CES - Analyst Blog


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Yahoo Inc. 's ( YHOO ) chief executive, Marissa Mayer, recently announced the launch of a number of advertising products and a mobile app acquisition at the International Consumer Electronics Show (CES) 2014.

Yahoo is focusing more on applications for smartphones and tablets as nowadays people spend more time on these devices. The company announced a new app named Yahoo News Digest for Apple 's ( AAPL ) iPhone and iPod touch devices. The app was built using insights from Summly, acquired last year for $1.1 billion. This app delivers the most important news twice a day on the user's mobile device.

The company also focused on a digital magazine called Yahoo Tech , readable on mobile devices and PCs. It will feature reviews and opinions from David Pogue, the former technology columnist for The New York Times, as well as stories from other technology writers.

Additionally, it announced a new version of its connected TV platform, called Yahoo Smart TV , to provide personalized recommendations from live TV to online streaming to its customers.

The company also introduced several new ad products under a unified brand called The New Yahoo Advertising , aimed to help advertisers, publishers and partners get more return from their online advertising campaigns.

With these product introductions and strong focus on quality content, Yahoo is well positioned to cater to advertisers who need quality and a more focused audience.

In addition, Yahoo acquired a startup named Aviate for an undisclosed amount.

Aviate is an Android app that automatically organizes the mobile home screen based on the time of the day or location. The technology takes the help of various signals such as GPS, Wi-Fi, accelerometer and others to personalize the home screen with relevant apps and information.

Though Aviate is still in private beta, Yahoo would open it to the first 25,000 people who sign up for it with the required code. According to Mayer, Aviate would be used within Yahoo apps to suggest content for people to engage with.

With this acquisition, Yahoo seems to continue with its strategy of refocusing its offerings on its mobile business and creating personalized mobile software. In keeping with the strategy, Yahoo has acquired 31 startups since Mayer took over the reins of the company in Jul 2012.

Yahoo remains focused on inventing new products and maintaining its competitive advantage worldwide. The rise in demand for such innovative personalized mobile services is likely to augment its overall revenues.

However, Yahoo continues to face tough competition from Facebook ( FB ), Google ( GOOG ) and Microsoft (MSFT). Facebook has become extremely popular with users, so much so that it is already the most popular social networking platform. According to a research firm E-Marketer, Yahoo lost its spot as the second-largest digital advertising seller, after Google, to Facebook for the first time in 2013.

Also, the inability to protect user information could damage its reputation and affect credibility, thus slowing financial growth and pulling down stock prices.

Yahoo currently has a Zacks Rank #4 (Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
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