QUOTE AND NEWS
Insurance Journal  May 11  Comment 
Germany’s federal cyber agency said on Thursday that Yahoo Inc. had not cooperated with its investigation into a series of hacks that compromised more than one billion of the U.S. company’s email users between 2013 and 2016. Yahoo’s...
Clusterstock  May 10  Comment 
Business Insider spoke with TD Ameritrade c hief market strategist, JJ Kinahan, to discuss millennial investors and more. Kinahan is an expert in retail investing. As the chief market strategist at TD, he has a unique window into 7 million...
TechCrunch  May 9  Comment 
 I’m very excited to announce that Yahoo’s chief information security officer, Bob Lord, will be joining TechCrunch for a fireside chat at Disrupt NY this year. Join us for this fascinating conversation. Disrupt NY runs May 15 to May 17, and...
Cellular News  May 8  Comment 
Tune in as Yahoo! Inc. (Nasdaq:YHOO) hosts the live stream of Berkshire Hathaway's annual shareholders meeting on Saturday, May 6. Yahoo Finance Editor-in-Chief Andy Serwer will be on-the-ground at CenturyLink Center Omaha,...
Benzinga  May 4  Comment 
The Vetr crowd on Thursday upgraded its rating for Yahoo! Inc. (NASDAQ: YHOO) from 2 stars (Sell), issued 17 days ago, to 4 stars (Buy). Crowd sentiment at the time of the upgrade was slit, with 50 percent of Vetr user ratings bullish. Share...
Benzinga  May 3  Comment 
On CNBC's Fast Money Final Trade, Tim Seymour said he would buy Yahoo! Inc. (NASDAQ: YHOO). He explained that Alibaba Group Holding Ltd (NYSE: BABA) moved higher and Yahoo hasn't followed the move entirely. Karen Finerman advised her followers...
TechCrunch  May 2  Comment 
 WeWork is announcing its first-ever CTO in the form of Laurent Paris. Paris joins WeWork from Spotify, where he held the VP of Engineering position for five years. Before that, Paris spent almost ten years at Yahoo where he worked on various...
Wall Street Journal  May 1  Comment 
Yahoo shares have become a barometer for investor expectations about tax cuts.
TechCrunch  May 1  Comment 
 Yahoo Finance has nabbed a couple of photos reported to show Fitbit’s upcoming smartwatch, along with a handful of reports that make the whole undertaking sound like one big fiasco. Sources are talking complaints about design, production...
SeekingAlpha  Apr 28  Comment 




 

Yahoo! Inc. (Nasdaq: YHOO) is a global internet services company that operates the Yahoo! Internet portal. It provides varied products and content, from email and search to media streaming and downloads. Its main revenue sources come from advertising and marketing services. In fiscal year 2010, Yahoo reported revenues of $6.3 billion and net income of $1.2 billion. While Yahoo's main presence is in the United States, its well-established name and solid partnerships in Asia make international expansion a promising opportunity for the company. In response to the fast growing mobile advertising market, Yahoo has been actively pursuing partnerships with carriers and original equipment manufacturers in the mobile industry, as well as tailoring their existing marketing services to mobile users.

Company Overview

Founded as a web directory by two Stanford graduates in 1994, Yahoo! had become a dominant player in the field of Internet services although its competitive position has since become eclipsed by Google and others. The company had experienced healthy growth in top-line revenue year over year for the last four years, but net income has fallen year-over-year due to increased costs of doing business in the increasingly competitive sphere of internet advertising. Specifically, Yahoo!'s year over year cost of revenue is increasing faster than their revenue growth.

Trends and Forces

Increase in Online Advertising

Advertising spending continues to show a disproportionate skew in favor of newspaper, TV and direct mail. However, the Internet channel has grown at approximately 18% per year--faster than any other channel--taking share from stagnant channels such as newspaper, which has been flat over the same time period. Continued growth in quality and availability of Internet access means that the Internet services sector--particularly Internet advertising--will remain lucrative for some time to come. An increasingly pronounced trend of replacing print directories and classifieds with virtual alternatives will also create a push for online search use as well as increase demand for online classifieds.

Online Video Advertising Growth

Video advertising promises to be a particularly lucrative area of rapid growth in the online advertising sector as online video viewership continues to rise. In research released by comScore, data shows that 175 million U.S. Internet users watched online video content in October for an average of 15.1 hours per viewer.[1]. In terms of video property and viewership, Yahoo ranked second with 53.8 million viewers, behind Google Sites's 146.3 million unique viewers and ahead of Viacom Digital, VEVO, and Facebook[1].

  • Branded vs. Search Advertising

Branded advertising is often image-based and usually priced on an "impressions" basis--the more times it shows up, the more the advertiser pays. Search advertisements are primarily text-based and usually rely on click-through; the more times a particular link is clicked, the more Yahoo! is paid. Together, the two constitute a good balance of different kinds of online advertising. However, branded advertising tends to depend very heavily on the economic situation of the brands in question.

  • Mobile Advertising

Mobile advertising is in its nascent stages and is currently growing at more than 20% per year, making it a powerful source of potential growth for Yahoo! On its end, the company has been actively pursuing partnerships with carriers and original equipment manufacturers in the mobile industry, as well as tailoring their existing marketing services to mobile users.[2]

Competition

  • Google is Yahoo!'s biggest competitor in search advertising. Google's acquisition of popular video site YouTube put it directly against Yahoo! in media streaming, and the two already have a long-standing rivalry over search-based online advertising. Yahoo! has lost significant search market share to Google. In 2009, Google made headlines by overtaking Yahoo! in unique users per month. However, Yahoo! recently released a next-generation online advertising platform system called Panama. Their system will in theory optimize advertising profits by increasing the average revenue per search click and has returned modestly successful results so far. Yahoo!'s recent acquisitions of RightMedia and BlueLithium further solidifies its position in display advertising. Finally, Yahoo!'s perceived role as a community-based entertainment site may also give it a slight edge over Google in entertainment-based advertising. However, Google's MySpace-YouTube advertising alliance may be poised to challenge the company.
  • Microsoft, with the introduction of Windows Live and adCenter, Microsoft is also a growing threat. Microsoft's acquisition of LiveJournal gives it a significant foothold in the webblog scene, and along with Google, it has been steadily gaining ground against Yahoo! in the European Internet services market. However, by itself Microsoft remains less a threat than Google.
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