Why You Should Get Excited About Yahoo! Inc. Stock

Yahoo! calls in the star power to help it announce its new focus on content.

Feb 10, 2014 at 1:30PM

As if CEO Marissa Mayer needed any more star power, during her Yahoo! Inc. (NASDAQ:YHOO) keynote she called SNL cast members Cecily Strong and Kenan Thompson to the stage for a Weekend Update live from the stage at the 2014 Consumer Electronics Show. Other celebrity guests, including news anchor Katie Couric, helped her to announce two new digital magazines and a broad effort to bring more content to Yahoo! sites.

Foolish tech and entertainment analyst Tim Beyers was at the event and tells Rex Moore what the company's shift to contextual advertising means for Yahoo! stock.

A full transcript follows the video.

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Rex Moore: Sticking with entertainment now, I understand that there was an SNL skit at the Yahoo! keynote address, here at CES. I didn't see that; what was that all about?

Tim Beyers: It was interesting! Cecily Strong and Kenan Thompson came out. Marissa Mayer invited them out onstage, and they did a Weekend Update live in the middle of the Yahoo! keynote. It was amazing, but I think the message here is that Yahoo! has a real focus on content.

The strategy at Yahoo! -- which had been banner ads and a lot of aggregation, and search had been a big part of it -- that is changing dramatically. Not only do we have an exclusive partnership with SNL; they're going to host the top clips at Yahoo! exclusively, so the SNL skit was to tout that, but it was also a very funny interlude.

But then you had some celebrities come out, like one of our favorites, David Pogue, came out and talked about Yahoo! Tech. There are going to be custom Yahoo! e-magazines, so content is going to be a huge contributor to the Yahoo! strategy, moving forward, and I think it's going to cover the range. It's going to cover tech, Yahoo! Food is going to be one of the new e-magazines.

It will be interesting to see. It is a shift. The advertising is going to be much more like Google (NASDAQ:GOOGL) than it has been in the past; it will be all contextual. But I think it's the first time in a while that it's OK to get excited about Yahoo! That's kind of refreshing, isn't it?

Moore: It is. I agree with you! Tim, that is great information for our investors.

We were at CES so you didn't have to be, though we wish you were here! It's really awesome. Thanks again!

Rex Moore owns shares of Google. Tim Beyers owns shares of Google. The Motley Fool recommends Yahoo! It recommends and owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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