QUOTE AND NEWS
TechCrunch  Jun 26  Comment 
 As part of the new corporate merger of Yahoo and Aol under the Oath brand, it looks like Yahoo accounts will no longer be accessible through AT&T email addresses (or those of any A&T subsidiaries). Read More
Clusterstock  Jun 23  Comment 
Since it was invented over 200 years ago, the wristwatch has been an integral component of fashion. In addition to their practical functionality of telling time, a watch serves as a collectible piece of art that communicates the personality and...
Financial Times  Jun 23  Comment 
Silicon Valley group paid $30m in 2011 to 17-year-old who won high-profile backing
Mondo Visione  Jun 19  Comment 
Effective June 19, 2017, YAHOO changed its name and trading symbol to Altaba Inc. (AABA).  MIAX Options Exchange has removed YAHOO from the MIAX Select Symbols program and has determined that AABA will not be added. For full details, please...
MarketWatch  Jun 19  Comment 
Yahoo Inc. has completed its transition to Altaba Inc. , a new company formed after the acquisition of its operating assets by Verizon Communications Inc . Starting with Monday's session, shares of the entity will trade under the ticker symbol...
Motley Fool  Jun 19  Comment 
The new entity is worth less than the sum of its parts, but don't go buying up shares just yet.
Clusterstock  Jun 16  Comment 
Since it was invented over 200 years ago, the wristwatch has been an integral component of fashion. In addition to their practical functionality of telling time, a watch serves as a collectible piece of art that communicates the personality and...
TechCrunch  Jun 16  Comment 
 This week The Europas Startup Conference and Awards once again pulled together the best startups in Europe for a day of conversation, networking and partying. The conference day is rounded out by the evening awards where the hottest startups in...




 

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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