Apple (AAPL) and Yahoo! (YHOO): A Match Made in Social Media Heaven?
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Today's Overall Ratings:
Up: 20 | Down: 36 | New: 12
Rating Summary:
52 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 20 | Down: 36 | New: 12
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In his report on Apple (NASDAQ: AAPL) today, JPMogan analyst Mark Moskowitz discussed the company's social media strategy, or lack thereof.
In the report, the analyst calls social media a "missing piece of the Apple Econsystem" but also stresses how important it will be for the company.
"Today, Apple does not possess a viable social media/networking product. Even so, Apple could still be a key factor in the market direction of social networking for mobile devices," Moskowitz says.
The analyst talked about Apple deepening partnerships with the usual suspects in social media - Facebook and Twitter - but one name raised eyebrows - Yahoo! (Nasdaq: YHOO).
That's right! Moskowitz said Yahoo! could represent a partnership opportunity for Apple.
"Both companies need help to enhance their social networking presence and both have similar interests to take on Google," Moskowitz explains. "Yahoo!’s new CEO Marissa Mayer, a former long-time Google executive, may choose to take a longer-term view on the business and be more aggressive against Google."
Besides Yahoo! Mail, the analyst notes that Yahoo! drives significant user traffic and advertising revenue from its finance, autos, news, sports, and travel presence. Notably, Google acquired travel-guide business Frommers and is planning to join it with its Zagat service (acquired in 2011) in its Google+ offering
and Google Maps.
Given that Apple is already breaking away from Google Maps with its own Map capabilities, "Apple may find increased value in Yahoo!’s suite of local-business and vertical specific offerings from a Map integration standpoint."
Moskowitz said that while he is merely postulating, the "combination of Ms. Mayer’s working knowledge of Google and Yahoo!’s current vertical-specific offerings may provide an interesting, and often not discussed, opportunity for Apple (and Yahoo!) to quickly improve its social networking presence and capabilities."
The analyst has a Overweight rating on Apple and today raised his price target from $675 to $770.
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In the report, the analyst calls social media a "missing piece of the Apple Econsystem" but also stresses how important it will be for the company.
"Today, Apple does not possess a viable social media/networking product. Even so, Apple could still be a key factor in the market direction of social networking for mobile devices," Moskowitz says.
The analyst talked about Apple deepening partnerships with the usual suspects in social media - Facebook and Twitter - but one name raised eyebrows - Yahoo! (Nasdaq: YHOO).
That's right! Moskowitz said Yahoo! could represent a partnership opportunity for Apple.
"Both companies need help to enhance their social networking presence and both have similar interests to take on Google," Moskowitz explains. "Yahoo!’s new CEO Marissa Mayer, a former long-time Google executive, may choose to take a longer-term view on the business and be more aggressive against Google."
Besides Yahoo! Mail, the analyst notes that Yahoo! drives significant user traffic and advertising revenue from its finance, autos, news, sports, and travel presence. Notably, Google acquired travel-guide business Frommers and is planning to join it with its Zagat service (acquired in 2011) in its Google+ offering
and Google Maps.
Given that Apple is already breaking away from Google Maps with its own Map capabilities, "Apple may find increased value in Yahoo!’s suite of local-business and vertical specific offerings from a Map integration standpoint."
Moskowitz said that while he is merely postulating, the "combination of Ms. Mayer’s working knowledge of Google and Yahoo!’s current vertical-specific offerings may provide an interesting, and often not discussed, opportunity for Apple (and Yahoo!) to quickly improve its social networking presence and capabilities."
The analyst has a Overweight rating on Apple and today raised his price target from $675 to $770.
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