QUOTE AND NEWS
Forbes  1 hr ago  Comment 
The stock continues to underperform the market, post Alibaba's listing on the U.S. stock exchange in the last quarter of 2014. The stock has declined by over 22% in first half of 2015, while the return on NASDAQ composite index is close to 8.7%....
Benzinga  2 hrs ago  Comment 
Investors might be too distracted to care how Yahoo! Inc. (NASDAQ: YHOO) performed during the second quarter. "It's always tough to get a good read on Yahoo because there's so many changes," B. Riley & Co. analyst Sameet Sinha told Benzinga....
Forbes  3 hrs ago  Comment 
Despite an expected dip in profit, analysts are generally optimistic about Yahoo! as it prepares to reports its second-quarter earnings on Tuesday, July 21, 2015. The consensus earnings per share estimate is five cents per share.The consensus...
Motley Fool  Jul 16  Comment 
The W4 form and the allowances you claim on it can make a big difference in your financial life.
Yahoo  Jul 16  Comment 
Heald College, owned by Corinthian Colleges Inc., abruptly closed this spring after a staggering $30 million fine levied by the Department of Education. Yahoo Finance explores the downfall of a 150-year-old institution.
Yahoo  Jul 16  Comment 
Yahoo Finance's Midday Movers is live each weekday at 12pm ET, covering all the latest news on the markets, the economy and the biggest stories of the day.
Benzinga  Jul 15  Comment 
In a report published Wednesday, SunTrust Robinson Humphrey analyst Bob Peck discussed why it is "natural" for investors to begin gauging the successes and failures of Yahoo! Inc. (NASDAQ: YHOO)'s CEO Marissa Mayer at her three-year...
TheStreet.com  Jul 15  Comment 
NEW YORK ( TheStreet) -- Probably more than any other company associated with the first wave of big Internet-based companies, Yahoo! has had the word "turnaround" bandied about to describe many of its efforts to maintain its position among...
The Times of India  Jul 14  Comment 
Flipkart and its subsidiary Myntra's hiring of senior talent from Silicon Valley continues apace. Flipkart announced on Tuesday that Yahoo veteran Eric Lange has joined Flipkart as the vice-president of product management for its customer experience.
Benzinga  Jul 14  Comment 
Scott Kessler, S&P Capital IQ deputy director of global equity research and head of technology sector equity research, was on CNBC Tuesday to discuss his outlook on Twitter Inc (NYSE: TWTR) prior to its second-quarter earnings release and if it is...




 

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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