Yahoo Releases New Version Of IntoNow To Cash In On The Mobile Growth

YHOO: Yahoo! logo

Yahoo (NASDAQ:YHOO) announced an update to its IntoNow app which is currently available on both the iPhone and Android-based devices. [1] The company estimates that approximately 80% of individuals watching TV have either a mobile device or tablet in hand, so it is attempting to tap into this user base by providing a comprehensive second screen experience via IntoNow. The app seeks to increase user engagement by providing information about the content being viewed and adds a social element to TV, giving users the ability to chat with each other during a program. Yahoo! is primarily a media provider and competes with companies such as AOL (NYSE:AOL), Google (NASDAQ:GOOG) and Facebook (NYSE:FB) for Internet traffic.

Check out our complete analysis of Yahoo here.

IntoNow fits the bill for the company’s “holistic mobile strategy,” which is focused on innovation instead of releasing applications similar to existing applications. The company expects that in the coming years users in all markets will access the web primarily through devices like phones and tablets instead of PCs. Its mobile strategy seeks to capitalize on this trend by creating unique applications that attract new users on to its platform. [2]

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We think the focus on mobile could pay off for Yahoo! in the long run. According to ComScore, 47.5% of all phones in the United States in April 2012 were smartphones. [3] If Yahoo is able to innovate with its mobile applications, it can not only get its current user base onto its new products, but also may be able to attract new users. If it is able to successfully integrate its mobile offerings with its online offerings, we could see an increase in traffic across its properties, and an upside to the Trefis price estimate. You can assess the impact that an increase in web traffic would have on the Yahoo’s value by using the chart below.

Over the next few months, we will watch what Yahoo has in store on the mobile front. A solid, innovative portfolio of mobile apps could get more users to its platforms, and consequently drive traffic across properties. We currently have a $19 price estimate for Yahoo, which is approximately 20% above the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

  1. Yahoo! Premieres IntoNow 3.0: Accelerating Second Screen Experiences, Yahoo! []
  2. Update on Yahoo! Livestand, Yahoo! Blog []
  3. The Great American Smartphone Migration: Nearly Half of Feature Phone Subscribers Who Acquired a New Device in April Switched to a Smartphone, ComScore []