QUOTE AND NEWS
Yahoo  Jun 27  Comment 
Join The Final Round at 4 p.m. EST as Yahoo Finance's Jen Rogers and Nicole Sinclair discuss the aftermath of last week's stunning Brexit vote.
Motley Fool  Jun 26  Comment 
Can consumers handle a double-digit percentage premium price hike in 2017?
Motley Fool  Jun 26  Comment 
A small-priced stock can do big things if you can stomach the risk.
Benzinga  Jun 25  Comment 
Hal Scott, Harvard professor, told Yahoo! Finance (Yahoo! Inc. (NASDAQ: YHOO) the much ballyhooed bank stress tests will effectively do nothing to avert another financial crisis. One objective of the tests is to push banks to increase capital...
Benzinga  Jun 24  Comment 
A group called the "Future of Television Coalition" has pushed an initiative for cable companies to "ditch the box" and allow customers to finally get rid of those pesky cable boxes and all their fees. The "ditch" plan calls for shipping of apps...
Benzinga  Jun 24  Comment 
Goldman Sachs Group Inc (NYSE: GS) is switching up its interview process by implementing Millennial-friendly methods. The company now requires candidates to send a pre-recorded video through the video-platform "HireVue." The move signifies a...
Forbes  Jun 23  Comment 
Yahoo hopes to earn up to $3 billion from the sale of its patents. But our analysis shows those patents are worth no more than $200 million at best -- and as low as $50 million at worst.
Yahoo  Jun 22  Comment 
Wall Street Democrat Jon Corzine told Yahoo Finance that he thinks Elizabeth Warren would be a great pick for a vice presidential running mate for Hillary Clinton.
The Economic Times  Jun 22  Comment 
The device has Android 6.0 with LeEco’s EUI which is fairly clean & fast. The only couple of extra apps are Le Vidi & Yahoo Weather.
Benzinga  Jun 21  Comment 
Earlier Tuesday, Yahoo! Inc. (NASDAQ: YHOO)'s Tumblr announced it would be launching a live video feature in the afternoon. This will allow users to broadcast live video directly to their followers' Dashboards and vice versa. In what has been...




 

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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