QUOTE AND NEWS
Jutia Group  8 hrs ago  Comment 
[Benzinga] - Yahoo! Inc. (NASDAQ: YHOO ) shares have been a disappointment for the bulls ever since peaking out in mid-November 2014. Since then, shares have traded lower by more than 15 percent while the NASDAQ has ... Read more on this. Yahoo!...
Benzinga  8 hrs ago  Comment 
Yahoo! Inc. (NASDAQ: YHOO) shares have been a disappointment for the bulls ever since peaking out in mid-November 2014. Since then, shares have traded lower by more than 15 percent while the NASDAQ has rallied about 7 percent. The rest of...
CNNMoney.com  Mar 1  Comment 
Bus drivers for Apple, Yahoo and several other Silicon Valley giants have unionized.
Motley Fool  Mar 1  Comment 
An international research team examined the relationship between a toxic dose of seven different drugs -- both legal and illegal -- and human intake of those drugs, and came to a surprising conclusion about marijuana.
Forbes  Mar 1  Comment 
A surprisingly high percentage of Yahoo's adjusted EBITDA in its core business is derived from IP sales and search partnership deals which will end in the next few years. The actual Yahoo core business is actually much weaker than the company...
Forbes  Feb 28  Comment 
Shuttle bus drivers for five tech companies -- eBay, Apple, Yahoo, Genentech and Zynga -- voted Friday afternoon to be represented by Teamsters Local 853, the union said, part of a larger push toward unionizing Silicon Valley's legions of...
Benzinga  Feb 27  Comment 
With NASDAQ approaching 5,000, the main topic of discussion in the Street currently is whether the valuation at which tech companies are trading is justified. Dan Rosensweig, CEO of Chegg Inc (NYSE: CHGG) and former COO of Yahoo! Inc. (NASDAQ:...
Jutia Group  Feb 27  Comment 
[GlobeNewswire] - Inc., a guide focused on making users' daily habits inspiring and entertaining, will visit the Nasdaq MarketSite in Times Square. Yahoo will celebrate 20 years of technological innovation serving more ... Read more on this. ...
Forbes  Feb 27  Comment 
Yahoo can opt out of its search deal with Microsoft in the next 30 days. If they do, it would be Marissa Mayer's riskiest bet yet.
Yahoo  Feb 26  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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