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Credit Suisse Disruptive Technology Portfolio: Talk Of Acquisition By Microsoft Boosts Yahoo's Stock Price

Yahoo gets a 7.5% gain during the week, even though rumors were later discredited.
Yahoo's stock had the most interesting story last week of the 29 Disruptive Technology Portfolio companies. The New York Post reported Microsoft and Yahoo were in takeover discussions, with unnamed sources putting a value of $50 billion on a deal.

The companies are said to have been exploring a potential partnership since 2006, when Microsoft moved off Yahoo's ad serving platform onto its own. Google leads in Internet advertising market share, followed by Yahoo, and Microsoft is a distant third. Google's acquisition of DoubleClick and the specter of Google controlling even more Web advertising were the catalysts for Microsoft to move on a Yahoo acquisition.

The Wall Street Journal later in the week reported that discussions between the companies were no longer active, but the momentum had taken hold, pushing Yahoo shares up 7.5% during the week.

The DTP as a whole had a healthy gain, growing 3% compared with the S&P 500's 1.1% increase. Twenty-one stocks ended the week in positive territory, while eight posted declines.

Disruptive Technology Portfolio
    Stock Price
5/9/07
% Change
Weekly
% Change
Year To Date
AAPL Apple Computer $106.88 6.5% 26.0%
BIDU Baidu.com, Inc. $127.08 3.3% 12.8%
BBBB Blackboard $39.11 11.6% 30.2%
BRCM Broadcom $33.50 2.4% 3.7%
CNQR Concur Technologies $19.78 7.9% 23.3%
CRM salesforce.com $43.45 5.2% 19.2%
CTSH Cognizant Technology $79.70 -5.5% 3.3%
DRIV Digital River $57.56 -0.8% 3.2%
EBAY Ebay $34.99 3.8% 16.4%
GOOG Google Inc. $469.25 0.7% 1.9%
INFY Infosys $52.03 -3.1% -4.6%
KNXA Kenexa $32.36 5.2% -2.7%
MFE McAfee $33.66 2.8% 18.6%
MRVL Marvell $17.72 7.2% -7.7%
NOVL Novell $7.21 0.7% 16.3%
NSR Neustar $27.28 -7.0% -15.9%
NVDA Nvidia Corp. $33.44 1.8% -9.6%
RHT Red Hat $22.30 7.2% -3.0%
RIMM Research in Motion $154.83 16.6% 21.2%
RNOW RightNow Tech $15.36 2.9% -10.8%
TLEO Taleo $18.11 11.2% 32.5%
TIBX TIBCO, Inc. $9.22 3.4% -2.3%
TXN Texas Instruments $36.83 4.9% 27.9%
ULTI Ultimate Software $28.51 -0.5% 22.6%
VRSN Verisign $26.40 -2.3% 9.8%
WEBX WebEx Communications $56.81 0.0% 62.8%
WIND Wind River $9.86 -1.0% -3.8%
WIT Wipro $16.71 -0.9% 3.5%
YHOO Yahoo! Inc. $30.22 7.5% 18.3%
  DTP Index Value $272.06 3.0% 9.3%
SPX S&P 500 $1,512.58 1.1% 6.6%

© 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 [email protected] or calling 1-877-291-2683.

View the most recent results of the
Disruptive Technology Portfolio

Editor's Choice
Mary E. Shacklett, President of Transworld Data
James M. Connolly, Contributing Editor and Writer