Yahoo Shares Fall, ValueClick's Climb On Week's Developments

Shares of Yahoo weakened after the release of its quarterly earnings this week and analysts openly speculated Wednesday whether the online giant could be a potential buyout candidate.

Yahoo's stock price has dropped nearly 20% in the past three months, and slipped 5% after quarterly earnings and a modest outlook were released on Tuesday.

In a research note, Youssef Squali of Jefferies said investors will likely give the new management team 12-18 months to turn the business around, after which pressure may grow for a sale.

"We continue to view Yahoo as a 'value' pick, given its valuation, its strong brand and its unique set of assets that make it an attractive acquisition target," wrote Squali, who has a buy rating with a $34 price target on the stock.

Google and Microsoft are scheduled to release earnings today.

Meanwhile, shares of ValueClick have climbed more than 5%, and are back over $30 on positive analyst reaction to Monday's announcement that the company plans to acquire comparison shopping site operator MeziMedia for up to $352 million.

Stanford Group analyst Clayton Moran increased his price target for the stock to $40 from $35, calling MeziMedia "a high-margin business with strong growth ... complementary to ValueClick's existing assets."

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