QUOTE AND NEWS
Yahoo  Jun 25  Comment 
Yahoo Finance Editor-in-Chief Andy Serwer talks with IAC Chairman Barry Diller about the just-announced Match.com IPO and a lot more.
Yahoo  Jun 25  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.
Jutia Group  Jun 25  Comment 
[AP] - Yahoo's cybersecurity chief says he's heading to Facebook to become its chief security officer. Alex Stamos said in a Facebook post that he will be joining the social networking company on Monday. He succeeds ... Read more on this. Yahoo!...
Forbes  Jun 25  Comment 
Yahoo!’s stock has underperformed the markets for the first three months of this year, post-Alibaba's listing on the U.S. stock exchange in the last quarter of 2014. The stock has declined by over 17% in first five months of 2015, while the...
TechCrunch  Jun 25  Comment 
 Palo Alto-based Curbside, a company offering a mobile app that allows shoppers to buy from local retailers like Target and Best Buy then pick up items at stores without exiting their car, is today announcing the close of $25 million in Series B...
Jutia Group  Jun 24  Comment 
[at TheStreet] - Yahoo! (YHOO) stock closed up after the tech company's lawyer said that by the end of the fourth quarter it will complete the spin-off of its stake in Alibaba (BABA). Read more on this. Yahoo! Inc. (YHOO), valued at $38.42B,...
TheStreet.com  Jun 24  Comment 
NEW YORK (TheStreet) -- Shares of Yahoo! closed up 0.71% to $40.94 on Wednesday after the tech company's general counsel Ron Bell said that by the end of the fourth quarter, it will complete the spin-off of its stake in Alibaba , Bloomberg...
TheStreet.com  Jun 24  Comment 
NEW YORK (TheStreet) -- Yahoo!'s best days are ahead of it; that is, if you believe CEO Marissa Mayer. At its annual shareholder meeting Wednesday, Mayer said the company's future is bright. "We think the best years for the company are still...
TechCrunch  Jun 24  Comment 
 Workplace collaboration platform Slack has been a runaway success since opening for business just over a year ago: the company co-founded and led by Flickr founder Stewart Butterfield now has 1.1 million daily active users, with 300,000 of them...
Yahoo  Jun 24  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.




 

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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