Microsoft's bid for Yahoo gives dramatic evidence of the continuing strength of new-media stocks.
Jefferies analyst Youssef Squali questions the viability of the terms of the Microsoft bid -- but he needs no convincing when it comes to the strength of online firms. He offered favorite names.
"We have yet to see an adverse effect on online advertising," he told CNBC. "We continue to see, advertisers tell us, that the ROI they are generating online is substantially better than the ROI they are generating offline."
So what else looks good to him in the new-media space?
"Bankrate should still be getting some traction with its stock price," he said.
"You have companies like Vistaprint and Shutterfly ; those are niche e-commerce players that have very different-shaded business models. Their revenue growth has accelerated; they're still growing about 40 per cent. We like them a lot."
Vistaprint and Shutterfly are investment-banking customers of Squali's firm.