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Friday, October 19, 2012

Stocks In News: Yahoo! Inc. (NASDAQ:YHOO) & Starbucks Corporation (NASDAQ:SBUX)


Internet portal Yahoo! Inc.(NASDAQ:YHOO) is set to close down its portal in South Korea and an Internet advertising business, the company said on Friday.

Its Seoul office, which has over 200 employees, would be shut by the end of the year, it said. This is part of the company's strategy to close down loss-making operations under its new Chief Executive Marissa Mayer, who took charge this July.

South Korea is a market where the company has struggled with losses for over a decade.

Since entering South Korea in 1997, Yahoo has operated a namesake portal in Korean and an Internet advertising company, Overture Korea.

Yahoo Korea was struggling against local competition and also Google and Facebook. It failed to increase advertising revenues with more advertisers flocking to mobile devices.

Meanwhile coffee chain company Starbucks Corporation(NASDAQ:SBUX) opened its first store in India in an equal joint venture with Tata Global Beverages, part of the Tata group.

The first store was opened in the western Indian city of Mumbai, located on the Arabian Sea.

The first outlet opened in the upscale locality of south Mumbai. Two more outlets are schedule to be opened in Mumbai next week followed by stores in capital New Delhi next year.

Chief executive Howard Schultz said India, along with China, are "at the core" of the company's growth strategy.

At a price of slightly over $2 for a 12 ounce cup of cappuccino, it will be catering to the upper end of the coffee-drinking segment. For snacks to go with the coffee the menu has items such as Elaichi Mawa croissants — made with cardamom and milk solids — and tandoori paneer rolls for local tastes.

Share of SBUX are down 4% to $45.56.

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