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5/29/2007
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Credit Suisse Disruptive Technology Portfolio: Microsoft's Acquisition Of AQuantive Hits Yahoo's Stock

AQuantive's ad serving technology and ad network should help Microsoft compete against Yahoo and Google.

Yahoo's stock price was up sharply early in the week, reacting to news of Microsoft's acquisition of aQuantive. After the initial shock, Yahoo's shares gave back those gains over the next few trading sessions and ended the week down 2.1%.

Microsoft has struggled to develop online advertising technology that's competitive with Google's and Yahoo's. AQuantive's ad serving technology and ad network business are expected to help. Microsoft is paying a steep premium: The transaction is valued at about $6 billion, or $66.50 per share, an 85% premium on the stock's closing price the day before.

Google shares were largely unaffected by the news; the stock ended the week flat.

The Disruptive Technology Portfolio as a whole had only a mild gain during the week, increasing 0.7%. The S&P 500 also grew only 0.5% during the same period. Eighteen DTP stocks saw increases, while 11 declined.

Disruptive Technology Portfolio
    Stock Price
5/23/07
% Change
Weekly
% Change
Year To Date
AAPL Apple Computer $112.89 5.2% 33.1%
BIDU Baidu.com, Inc. $130.70 0.7% 16.0%
BBBB Blackboard $40.18 -0.7% 33.8%
BRCM Broadcom $31.30 -1.9% -3.1%
CNQR Concur Technologies $20.10 6.6% 25.3%
CRM salesforce.com $46.24 2.2% 26.9%
CTSH Cognizant Technology $76.17 -2.0% -1.3%
DRIV Digital River $50.66 -3.2% -9.2%
EBAY Ebay $32.88 -1.1% 9.3%
GOOG Google Inc. $473.97 0.3% 2.9%
INFY Infosys $49.44 -3.9% -9.4%
KNXA Kenexa $37.19 7.5% 11.8%
MFE McAfee $34.80 4.7% 22.6%
MRVL Marvell $16.02 -6.0% -16.5%
NOVL Novell $7.71 1.2% 24.4%
NSR Neustar $29.28 3.6% -9.7%
NVDA Nvidia Corp. $34.38 -1.5% -7.1%
RHT Red Hat $23.05 4.0% 0.2%
RIMM Research in Motion $155.60 2.3% 21.8%
RNOW RightNow Tech $16.22 3.5% -5.8%
TLEO Taleo $19.11 6.9% 39.8%
TIBX TIBCO, Inc. $9.01 0.1% -4.6%
TXN Texas Instruments $35.01 -3.8% 21.6%
ULTI Ultimate Software $28.01 0.1% 20.4%
VRSN Verisign $26.74 1.1% 11.2%
WEBX WebEx Communications $57.00 0.3% 63.4%
WIND Wind River $10.20 3.9% -0.5%
WIT Wipro $16.07 -3.1% -0.5%
YHOO Yahoo! Inc. $28.61 -2.1% 12.0%
  DTP Index Value $273.45 0.7% 9.8%
SPX S&P 500 $1,522.28 0.5% 7.3%

© 2007 Credit Suisse. Important disclosure information about potential conflicts of interest regarding the companies referenced above may be obtained at csfb.com/researchdisclosures, or by E-mailing equity.research@csfb.com or calling 1-877-291-2683.

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Disruptive Technology Portfolio

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