Bloomberg News

Yandex Slides After Report Shows Drop in Search Market Share

January 23, 2012

(Updates share price in second paragraph.)

Jan. 23 (Bloomberg) -- Yandex NV, operator of Russia’s most popular Internet search engine, slipped in U.S. trading after a report showed that the company’s share of the search market dropped below a four-week average.

Yandex fell 1.6 percent to $18.44 in New York, the largest drop since Jan. 17. The stock is down 6.4 percent in 2012.

The Hague, Netherlands-based company’s share of the Russian search market declined to 59.7 percent in the week through yesterday, from 59.9 percent the previous week and below the four-week average of 59.8 percent, Liveintenet.ru, an Internet- service provider and researcher, reported.

The search share of Mail.ru Group Ltd., the largest Russian-language Internet company and an investor in Facebook Inc., has been rising since October and was 8.5 percent last week, above its four-week average of 8.2 percent, the data showed.

Yandex’s share “has been deteriorating since the beginning of December,” David Ferguson and Anastasia Demidova, Moscow- based analysts at Renaissance, wrote in an e-mailed report today. “Our preference remains Mail.ru, which is trading at a significant discount to Yandex despite having a broadly similar growth outlook.”

Global depositary receipts of Mail.ru declined 1 percent to $29.20 in London, paring this year’s gain to 12 percent.

Google Inc.’s share of the Russian search market also dropped last week, to 25.7 percent, compared with a four-week average of 26 percent, the Liveinternet.ru data showed.

--Editors: Emma O’Brien, Brendan Walsh

To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net


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