Monster (NYSE:MWW) is poised to gain significantly from its integration with Yahoo’s (NYSE:YHOO) HotJobs. The trend is evident from Monster’s Q2 earnings results, which reported revenue growth of 25%. We see HotJobs as a key driver to revive traffic and job bookings for the company in 2011, which was marred by operating losses last year. Monster competes in the online job search market with niche players like careerbuilder.com and jobcentral.com and faces growing competition from social networks like LinkedIn (NYSE:LNKD), Facebook and Craigslist.
We currently maintain a near $13 price estimate for Monster stock, which is about 15% above the current market price.
Yahoo’s Impact: Traffic, Traffic and more Traffic
A simple look at the numbers shows the potential impact Yahoo can have on driving traffic for Monster’s web portal. According to comScore, unique visitors to Monster’s Career Ad Network (CAN) stood at around 77.9 million for June 2011 while the same number for Yahoo! sites was around 178 million. 
Additionally, the HotJobs acquisition, which was announced in mid-2010, has completed a full integration with Monster that includes a traffic sharing agreement where Monster will provide content for the jobs content on Yahoo’s home page.  
This provides Monster with added scale of traffic and bookings, which will benefit from Monster’s arsenal of new and existing job search tools such as Power Resume Search (PRS) and its 6Sense® cloud-based search tool.  Given that Monster has successfully cut back operating expenses in its international career services, we might well see Monster’s international business overtake its North American counterpart as the biggest contributor to Monster’s stock value by the end of this year.
- comScore Media Metrix Ranks Top 50 U.S. Web Properties for June 2011
- Monster buys HotJobs from Yahoo for $225 million
- BusinessWire: Monster and HotJobs Have Come Together As One Site – Which Means More Jobs, More Talent and the Most Precise Way to Match Them
- Monster Q2 2011 Earnings Slides
Disclosure: No positions