QUOTE AND NEWS
Benzinga  11 hrs ago  Comment 
Shares of Trulia (NYSE: TRLA) spiked higher following the Bloomberg release that Zillow (NASDAQ: Z) could be looking to buy the online real estate search company. Trulia's competitors surged following the news. Due to Zillow being one of...
Jutia Group  Jul 24  Comment 
[at Barrons.com] - Shares of Yahoo! (YHOO) are up $1.35, or almost 4%, at $36.06, continuing to be fueled, it would seem, by an article yesterday afternoon by Forbes contributor Eric Jackson of Ironfire Capital, who opined that Japan's Softbank or...
SeekingAlpha  Jul 24  Comment 
By Sammy Pollack: Shares of Yahoo (NASDAQ:YHOO) moved higher on Wednesday following the release of Eric Jackson's article, Is Alibaba Or SoftBank About To Buy Yahoo? While a deal may still be a long shot, I believe the odds of Alibaba...
TechCrunch  Jul 24  Comment 
 Aaron Krane, the designer-founder who started Hitpost, a sports-centric mobile company that Yahoo later acquired, is joining Khosla Ventures as an entrepreneur-in-residence. He’s close with some of Khosla’s recently hired consumer-focused...
TheStreet.com  Jul 24  Comment 
NEW YORK (TheStreet) -- Yahoo!  rose Thursday amid speculation that Alibaba or SoftBank could purchase the Internet company. Forbes contributor Eric Jackson reports the two companies are now the most likely candidates to acquire Yahoo!...
Forbes  Jul 24  Comment 
Flurry has an RTB platform called the Flurry marketplace that enables automated sales of ads across different ad properties. This acquisition is important for Yahoo as it can significantly boost its mobile ad revenue and resurrect its faltering...
SeekingAlpha  Jul 24  Comment 
By Mobile Guru: Frost and Sullivan which is one of the most influential market research firms recently awarded Spindle (OTCQB:SPDL) its 2014 Customer Value Enhancement award. This award is for Spindle's mobile technology that allows merchant and...
Benzinga  Jul 23  Comment 
Yahoo (NASDAQ: YHOO) gained more than three percent Wednesday after a Forbes columnist speculated the company may be acquired by Alibaba or Softbank. The same writer, Eric Jackson, on Monday said Yahoo could be acquired by Facebook, Apple,...
Forbes  Jul 23  Comment 
Yahoo's current stock price and its assets makes it a particularly attractive buyout candidate for either Alibaba or SoftBank.
Clusterstock  Jul 23  Comment 
On Wednesday, Yahoo launched a new blogging platform for Wall Streeters. There's only one condition — you have to be at the top of the game. "We’re opening up Yahoo Finance in a scalable way and socializing expert-generated financial content...




 

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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