Please ensure Javascript is enabled for purposes of website accessibility

Why Yandex Stock Rose 15% in July

By Keith Noonan - Updated Aug 9, 2020 at 3:40PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Russian tech company posted solid Q2 results and completed a deal for sole ownership of its e-commerce business.

What happened

Shares of Yandex (YNDX -6.79%) rose 15% in July, according to data from S&P Global Market Intelligence. The company's stock climbed thanks to momentum for the broader market, positive analyst coverage, and better-than-expected second quarter results. 

^SPX Chart

^SPX data by YCharts

Image source: YCharts.

The Russia-based search engine and ride hailing company also completed a reorganization of its e-commerce and payment services joint ventures with Sberbank. Yandex stock is now up roughly 36% year to date. 

A person touching a search bar.

Image source: Getty Images.

So what

As per a press release published on July 23, Yandex now fully owns the e-commerce platform Yandex.Market and has given up its position in the electronics payments business Yandex.Money. All non-compete agreements between the two companies in the financial services category have been dissolved, and Yandex paid 39.6 billion Russian rubles to Sberbank as part of the deal.

Yandex then published its second quarter results on July 28. The company's revenue came in at 41.4 billion rubles ($591.9 million), down roughly 10% year over year on a U.S. currency basis but flat in terms of local currency. The company posted a loss per share in the period of $0.14, while the average analyst estimate had called for a per-share loss of $0.16 on sales of $579.1 million.

The earnings release was followed by a new note on Yandex from Deutsche Bank analyst Lloyd Walmsley on July 29, maintaining a "buy" rating on the stock. Walmsley also hiked his one-year price target from $56 to $65 per share. 

Now what

Yandex stock has continued to climb in August's trading. The company's share price is up roughly 3% in the month so far. 

^SPX Chart

^SPX data by YCharts

Image source: YCharts.

The company opted not to provide third quarter guidance and also said that it wasn't planning provide full-year guidance due to uncertainties related to the coronavirus pandemic. 

Yandex has a market capitalization of roughly $20.7 billion. The tech company is valued at roughly 74 times this year's expected earnings and 6.8 times this year's expected sales. 

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Yandex. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Yandex N.V. Stock Quote
Yandex N.V.
$18.94 (-6.79%) $-1.38

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/08/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.