Yahoo! Goes After Netflix

Under new CEO Marissa Mayer, Internet powerhouse Yahoo! (NASDAQ: YHOO  ) has already made huge strides in its transitions part of its business model. And a recent move from the online portal takes aim at another high-flying tech stock -- Netflix (NASDAQ: NFLX  )

Yahoo! has overcome plenty in the last few years, from activist investors and naysayers alike, which has helped power a share price performance that's nearly double the market's return during the last one-year period.

But Yahoo! isn't resting on its laurels. In fact, Yahoo! made another bold, but positive, announcement recently that signals its seriousness about competing head-to-head with with the likes of Netflix in an emerging growth space in online entertainment

Yahoo! goes streaming
Historically, Netflix and Yahoo! both specialize in a more disruptive brand of media, but it appears that won't be the only emerging similarity between Yahoo! and Netflix.

Word recently broke that Yahoo! is well underway in a push toward developing its own in-house original featured content. This would be a sharp departure from the shorter video format that Yahoo! has historically favored. Instead, Yahoo! would steal a page from Netflix's highly successful playbook and begin to develop its own original content.

In the video below, tech and telecom analyst Andrew Tonner explains why he thinks Yahoo!'s making all the right moves with a push further in this gargantuan growth space.

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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9/3/2015 1:13 PM
YHOO $32.62 Up +0.85 +2.68%
Yahoo CAPS Rating: ***
NFLX $101.63 Down -3.81 -3.61%
Netflix CAPS Rating: ***