To its credit, Yahoo! Inc. (NASDAQ:YHOO) is finally being perceived as a better place to work. Last month, for instance, Mayer stated nearly twice as many people are currently applying for jobs at Yahoo! compared to the same time last year, while the rate of “top talent” leaving the company has been reduced by about half.
On redesigns and acquisitions
In addition, Yahoo! Mail enjoyed a design refresh late last year, and the company acquired Summly — a slick little news summarization app — for around $30 million in March.
Then on Monday, Yahoo! unveiled a dramatic redesign of its massively popular photo sharing site, Flickr.com, while simultaneously announcing its $1.1 billion acquisition of blogging specialist Tumblr.
Tumblr, for its part, boasts more than 105 million different blogs visited by 300 million unique users each month, and while it remains to be seen exactly how the folks at Yahoo! plan to further monetize their new prize, some sources say Tumblr is expected to grow annual revenue from just $13 million last year to $100 million in 2013.
Mayer also wasted no time promising Yahoo! wouldn’t “screw it up,” and further explained Yahoo! covered its bases by performing multiple valuation analyses — all of which apparently supported the $1.1 billion valuation. While time will tell how it all turns out, at least one of my fellow Fools already thinks Tumblr is big a win for Yahoo!.
Foolish final thoughts
In the end, the folks at Yahoo! Inc. (NASDAQ:YHOO) have moved startlingly fast to stabilize their faltering business. Thanks to low expectations in the face of strong competition, investors holding Yahoo! stock have been rewarded handsomely as a result. Assuming Mayer can continue building on her achievements, I see no reason to believe the outperformance by Yahoo! stock won’t continue.
The article Yahoo! Stock Is Hitting New Highs originally appeared on Fool.com and is written by Steve Symington.
Fool contributor Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.