Yahoo! Japan ( YAHOY ) reports its Q3 earnings on February 4. While the advertising business is likely to remain stable, we will be keenly listening for an update on the progress around PayPay and the role of Alipay and Softbank in supporting growth.
We currently have a price estimate of $7 per share for Yahoo! Japan, which significantly higher than the current market price. Our interactive dashboard on Yahoo! Japan’s Price Estimate outlines our forecasts and estimates for the company. You can modify any of the key drivers to visualize the impact of changes on its valuation.
While advertising helped revenues grow in Q2, new challenges across the media and commerce businesses, increase in SG&A expenses associated with business growth and investments in human resources and platform dented margins. Going into Q3, in addition to the margin discipline, we will be looking out for management’s commentary on the performance of YJ Card Corporation. Also of interest will be the progress on measures to revamp YAHUOKU.
However, the most important discussion is likely to be around traction and the plan for PayPay. We will be looking to hear how much of the integration of Yahoo! Japan’s different mobile payment initiatives under the PayPay umbrella is complete. Additionally, color around traction from Softbank’s salesforce thrust and integration with Alipay will also be of interest.
Do not agree with our forecast? Create your own price forecast for Yahoo! Japan by changing the base inputs (blue dots) on our interactive dashboard .
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