Clusterstock  Nov 21  Comment 
The next big fight could soon be coming to Yahoo's boardroom. And this time it could mean the end of the line for Marissa Mayer's tenure as Yahoo's CEO. Over the last few weeks, the news surrounding Yahoo has been bad. On Wednesday, SunTrust...
The Economic Times  Nov 21  Comment 
Applications for sound-marks can now be accompanied by a sound-file in MP3 format. The Yahoo yodel (of Yahoo Inc) was the first sound mark to be registered in India in 2008.
New York Times  Nov 20  Comment 
Yahoo blocked some users from accessing their Yahoo email accounts unless they switched off their ad blockers, adding to the debate over ad blocking.
Benzinga  Nov 20  Comment 
Shares of Yahoo! Inc (NASDAQ: YHOO) have been treading a southward path in 2015 and are down 35 percent year-to-date. SunTrust Robinson Humphrey’s Robert S. Peck maintained a Buy rating on the company with a price target of...
Financial Times  Nov 20  Comment 
Tech group tries to fight back and protect ad revenues from its Yahoo Mail service
Forbes  Nov 20  Comment 
The next lucrative paradigm shift in sports consumption is virtual reality. Once Yahoo sets a baseline for streaming rights, the NFL will be in the catbird seat to ask much more than that from Google for the rights to display games in VR on YouTube.
Times Online  Nov 20  Comment 
Marissa Mayer is Silicon Valley’s original poster girl, a millionaire Google star drafted in to save Yahoo from disaster. Now,...
Yahoo  Nov 19  Comment 
Yahoo Finance breaks down the biggest stories of the day and looks at everything you need to know about tomorrow today.
Wall Street Journal  Nov 19  Comment 
Starboard’s plan for Yahoo to sell its core business makes sense given management’s failure to turn the business around.
New York Times  Nov 19  Comment 
Yahoo, one of the leading sites for sports fans, has found success with its streams of N.F.L. games, but its push into fantasy sports has drawn scrutiny from regulators.


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]


  • 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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