QUOTE AND NEWS
Forbes  1 hr ago  Comment 
Yahoo Inc. and the global law firm Baker & McKenzie are charged with "conspiring" to subvert the Mexican judicial system by bribing Mexico City's Chief Justice to overturn a multimillion dollar judgment against the technology giant, a new a civil...
Benzinga  2 hrs ago  Comment 
Alibaba Group Holding Ltd's (NYSE: BABA) Jack Ma spoke with Bloomberg and Emily Chang Friday and was asked about Amazon.com, Inc. (NASDAQ: AMZN) and Yahoo! Inc. (NASDAQ: YHOO). When asked if he thought an acquisition of Yahoo was possible, Ma...
TheStreet.com  3 hrs ago  Comment 
NEW YORK (TheStreet) -- Ahead of the launch of trading in Alibabaa shares later today, research firm Piper Jaffray believes that much of the easy gains in Yahoo's stock have already been realized. The focus will now be on how the shares of...
The Economic Times  3 hrs ago  Comment 
US stocks were little changed mid-session on Friday after Alibaba's strong debut was offset by falling technology shares as Oracle and Yahoo stumbled.
CNNMoney.com  4 hrs ago  Comment 
Read full story for latest details.
Jutia Group  6 hrs ago  Comment 
[at TheStreet] - Shares of Yahoo! (YHOO) rose in morning trading Friday after Alibaba (BABA) had its much-anticipated IPO. Read more on this. Yahoo! Inc. (YHOO), currently valued at $42.41B, opened at $42.40.   During the trading session,...
MarketWatch  10 hrs ago  Comment 
The U.S. stock market moves higher on Friday, sending the S&P 500 and Dow Jones Industrial Average to a fresh intraday record.
Wall Street Journal  Sep 19  Comment 
Alibaba Group Holding's initial public offering will make Yahoo about $5.1 billion richer.
TheStreet.com  6 hrs ago  Comment 
TheStreet.com  Sep 18  Comment 
NEW YORK (TheStreet) -- Shares ofaYahoo!a fell off 2.06% to $41.71 in morning trading Tuesday after CNBC reportedaAlibabaaplanned to price its IPO within its increased range of $66 to $68, rather than at the speculated amount of $70 or more. The...
SeekingAlpha  Sep 18  Comment 
By Valuentum: Sometimes we receive emails from members requesting some of the "missed calls" we've had. There have been a number of them, but the one that immediately comes to our team's mind is Yahoo (NASDAQ:YHOO). We know that you know that it's...




 

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.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki