Articles for Monster

Potential 14% Upside to Monster from Job Postings Growth

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Wednesday, September 1st, 2010 by Trefis Team

The number of new job postings on Monster (NYSE:MWW) sites in North America has fallen steeply over the past few years owing to the hiring slump and the challenging recruiting marketplace in the US.  We expect the declining trend to continue as a result of the growing reach of social media networks like Facebook, Twitter and LinkedIn.  However, if the number of new job postings were to pick up rapidly, contrary to our expectations, there could be a significant upside to Monster’s stock.

An expected increase in new job postings on Monster’s international sites could boost Monster’s stock further. We currently have a Trefis price estimate of $12 for Monster’s stock, about 10% above the current market price of $11. We estimate that Career Services International and Career Services North America constitute around 41% and 34% of Monster’s stock price, respectively.

Below we highlight the historical and future trends for new job postings on Monster sites globally .

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Streaming Two World Cups a Year Could Boost Akamai Stock By 3%

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Friday, August 27th, 2010 by Trefis Team

Akamai (NASDAQ:AKAM) operates a global network of servers that help large websites like Yahoo (NASDAQ:YHOO)  and Monster (NYSE:MWW) deliver content to their end users. Akamai’s technology provides faster, more reliable downloads of shopping, media, gaming and other content.

The recently concluded soccer World Cup in South Africa was a major event for Akamai’s media content delivery network.  Akamai delivered more than 1.6 million concurrent World Cup streams across its network at peak demand, according to the company. The majority of customers leveraged Akamai’s HD network, boosting the company’s revenue per media customer.

We estimate that the 2010 World Cup generated slightly more than $10 million in revenue for Akamai. Based on this figure, the company would need to stream about 33 new events of World Cup scale every year in order to double its media content delivery revenues.

More realistically, we see a potential upside of 2% to 3% to our $28.41 price estimate for Akamai’s stock if the company streams two events of World Cup scale every year during the Trefis forecast period. Our analysis follows below. … To read the full article Subscribe to Trefis Pro

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Margin Growth Could Boost Monster Stock by 15%

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Thursday, August 19th, 2010 by Trefis Team

Monster (NYSE:MWW) is an online job posting and recruitment service that operates the website Monster.com. In the online recruitment space, Monster competes especially with social networking sites like LinkedIn, Facebook and Twitter.

Monster’s profit margins rose during the second quarter of 2010, particularly in North America. In the company’s recent quarterly earnings announcement, management cited cost cutting and the success of its higher-priced Power Resume Search service as reasons for the margin expansion.

We expect Monster’s margins to reach 29.5% by the end of our forecast period, driven in part by the integration of Yahoo’s HotJobs division, which Monster recently acquired. We see a 15% upside to the $12 Trefis Price estimate for Monster’s stock in the event that margin growth exceeds our expectations. Our analysis follows below. … To read the full article Subscribe to Trefis Pro

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Akamai Could See 5% Upside From E-Commerce Growth

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Monday, August 2nd, 2010 by Trefis Team

Akamai (NASDAQ:AKAM) operates a global network of servers that help large websites like Yahoo (NASDAQ:YHOO)  and Monster (NYSE:MWW) deliver content to their end users. Akamai’s technology provides faster, more reliable downloads of shopping, media, gaming and other content.

Based on Akamai’s strong second-quarter earnings report, we have revised the Trefis stock price estimate from $27.37 to $28.41. We are particularly intrigued by the sharp rise in e-commerce customer signups that Akamai’s management noted in the earnings report. If this trend continues, it could potentially drive an additional 5% upside for the stock. Our analysis follows below.

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Online Social Gaming Boosts Akamai

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Tuesday, June 29th, 2010 by Trefis Team

Akamai (NASDAQ:AKAM) operates a global network of servers that help large websites like Yahoo (NASDAQ:YHOO)  and Monster (NASDAQ:MNST) deliver content to their end users. Acting like an air traffic control system for the Internet, Akamai’s technology provides faster, more reliable downloads of shopping, media, gaming and other content. We estimate that Software & Game Content Delivery constitutes around 16% of the $27.37 Trefis price estimate for Akamai’s stock.

Akamai caters to many big retailers, media and gaming companies and numerous e-commerce websites. We expect the company’s Software & Game Content delivery business revenues will get a significant boost from the growing popularity of online gaming on social media networks such as Facebook and MySpace. Here’s why:

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International Markets and Search Technology To Drive Monster’s Stock

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Friday, May 21st, 2010 by Trefis Team

Monster (NYSE:MWW) recently indicated that its seeing a pickup in the number of new job posting deals with companies in international markets.  We believe that overall improvements in the international job market along with the faster adoption of Monster’s Power Resume Search product will further drive the company’s growth in international markets and benefit Monster’s stock.

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Social Networking Sites a Growing Threat to Monster’s Stock

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Friday, April 16th, 2010 by Trefis Team

Monster (NYSE:MWW), an online job posting and recruitment service, faces tough competition in the online job search market from three groups of players:

(1) social networking sites like Facebook, Twitter and LinkedIn

(2) niche job sites such as TheLadders.com, BlueSteps and Dice

(3) Free or low-cost job posting alternatives like Craigslist

Monster’s stock depends on generating profits from employer job postings which have declined over the last two years.  Furthermore, the increasing use of social networking sites for recruitment will hamper Monster’s recovery despite a long-term improvement in the overall economy.

However, there could be an upside of more than 15% to the $11 Trefis price estimate for Monster’s stock if new job posting numbers on North America sites gradually return to the 2007 levels of 1.9 million, instead of a decline to 1 million that we forecast.

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Better Resume Search Technology Can Help Monster Compete with LinkedIn, Facebook

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Friday, February 26th, 2010 by Trefis Team

Monster (NYSE:MWW) is ramping up its efforts to improve resume search by incorporating intelligent search technology, Semantic 6Sense, into its next generation of products for both employers and job seekers.  We believe such technology will make Monster more competitive against social networking sites like LinkedIn and Facebook that have increasingly been used as alternative channels of recruitment by employers.

Below we explain the importance of the Career Services business for Monster, how 6Sense technology will benefit recruiters and how it can slow decline in the prices Monster charges recruiters for access to resumes.

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Monster-Yahoo: $10.90 Trefis Price Estimate for Monster

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Monday, February 8th, 2010 by Trefis Team

Monster (NYSE:MWW) announced last week that it is buying Yahoo’s (NASDAQ:YHOO) HotJobs for $225 million in cash. Under the terms of the deal, Monster will pay Yahoo $20 million to $31 million a year for Yahoo to redirect traffic to its site.

We believe that the HotJobs deal will slow job posting declines for Monster in North America and has the potential to even increase job postings over time.

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Monster.com – beneficiary or victim of recession?

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Monday, December 14th, 2009 by Trefis Team

Monster operates the online job search portal Monster.com which makes money from two sources:

(i) employers paying to post jobs and view resumes
(ii) job seekers purchasing premium services like resume/cover letter writing and priority listing of resume
The company has experienced an increase in visitor traffic to its job portals as the number of job seekers has increased.
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