QUOTE AND NEWS
TheStreet.com  Jul 31  Comment 
By David Russell of OptionMonster NEW YORK -- OptionMonster's tracking systems yesterday detected the purchase of 20,000 September 40 calls for 75 cents and the sale of an equal number of September 45 calls for 20 cents. Volume surpassed the...
Jutia Group  Jul 30  Comment 
[at TheStreet] - Yahoo! (YHOO) rose Wednesday as Alibaba talks with Snapchat about funding the photo messaging company in a deal that would value Snapchat at $10 billion. Read more on this. Yahoo! Inc. (YHOO), with a current value of $37.10B,...
TheStreet.com  Jul 30  Comment 
NEW YORK (TheStreet) -- Yahoo!  rose Wednesday as Alibaba talks with Snapchat about funding the photo messaging company in a deal that would value Snapchat at $10 billion, according to Bloomberg. Yahoo! has an approximately 23% stake in...
Forbes  Jul 30  Comment 
Robert Bowman is currently president and CEO of Major League Baseball Advanced Media.  He is also believed to be one of the finalists to become Baseball's next commissioner, although he is considered a long shot.  Thus, his views on the daily...
Cloud Computing  Jul 29  Comment 
ChannelAdvisor Corporation (NYSE:ECOM), a leading provider of cloud-based e-commerce solutions that enable retailers and manufacturers to increase global sales, today integrated its digital marketing platform with Yahoo ...
Forbes  Jul 29  Comment 
After two years on the job, Marissa Mayer and her management team have yet to show any tangible results to shareholders for the turnaround of Yahoo's core business. Shareholders would be better served seeing either Alibaba or SoftBank acquire the...
TechCrunch  Jul 29  Comment 
 Yahoo-owned photo-sharing and storage site Flickr announced this morning the rollout of a new licensing program aimed at the service’s members who are looking to have their work discovered, featured on prominent news sites, including Yahoo’s...
MarketWatch  Jul 29  Comment 
Tech stocks scored broad gains in early trading Tuesday as investors prepared to turn their attention toward Twitter Inc. , which reports its second-quarter results after the close of trading. Twitter shares were up by 15 cents at $38.08. Gains...
Yahoo  Jul 29  Comment 
Yahoo Sports' Marc Spears weighs in on the real winners and losers in the sale of the L.A. Clippers
SeekingAlpha  Jul 29  Comment 
By Matthew Smith: As the Alibaba (Pending:BABA) IPO nears there are many investors positioning ahead of offering in the hope that they will be able to ride the sector higher on the resulting euphoria. We continue to field questions on Yahoo...




 

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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