RealTime IT News

Higher Ad Rates Expected at Yahoo!

Yahoo! Inc. may raise advertising rates as much as 15 percent to 20 percent this week, according to a published report.

The companies share price rose as much as 5.3% last week on optimism that the Internet search service is expected to raise advertising rates, helping to boost its total revenue, Bloomberg News reported.

Yahoo! is expected to release its new advertising rates for the next year on Sept. 15. The percentage estimate came from Brian Oakes, an analyst at Lehman Brothers.

Bloomberg said Oakes raised his earnings estimate for Yahoo! in 2000 to 56 cents a share from 52 cents a share.

Analysts expect the company to earn 55 cents a share for the year 2000, according to a survey by First Call Corp.

Oakes also boosted his rating on Yahoo! to "outperform" from "neutral." Yahoo! shares closed Friday at $170.50, up more than $7.