QUOTE AND NEWS
TheStreet.com  Aug 19  Comment 
NEW YORK (TheStreet) -- Yahoo! 2015 earnings estimates were lowered to $0.18 from $0.37 per share at Cantor Fitzgerald, with 2016 earnings estimates cut to $0.31 from $0.43 per share. The firm maintained its "buy" rating and $56 price target...
Benzinga  Aug 19  Comment 
With the IRS apparently still studying the details of a potential spin-off of Yahoo! Inc. (NASDAQ: YHOO)’s stake in Alibaba Group Holding Ltd (NYSE: BABA), SunTrust analyst Bob Peck released a new report explaining the four possible scenarios...
Yahoo  Aug 18  Comment 
Given oil prices are trading near multi-year lows, it may seem counterintuitive for Shell to drill in the Arctic. However, Yahoo's Michael Santoli contends the energy behemoth is actually playing the long-game and protecting its dividend.
Yahoo  Aug 18  Comment 
Yahoo Finance's Midday Movers is live each weekday at 12 p.m. ET, covering all the latest news on the markets, the economy and the biggest stories of the day.
Forbes  Aug 18  Comment 
Daily Fantasy Sports (DFS) continues its mammoth growth, with payouts exceeding previous industry highs year-after-year as evidenced by record guaranteed payouts by DraftKings and FanDuel this year, as well as Yahoo, CBS, and Amaya jumping into...
The Hindu Business Line  Aug 18  Comment 
BuzzFeed announced plans today to launch a Japanese news website in a partnership with Yahoo Japan, the latest step in a global expansion push.The announcement marks a departure from practi...
The Hindu Business Line  Aug 17  Comment 
Graduates, undergraduates, and post-graduate students across the country have been invited to submit innovative ideas for using technology to transform India. Accenture, in partnership with Yahoo!...
Forbes  Aug 14  Comment 
At Holdings Channel, we have reviewed the latest batch of the 38 most recent 13F filings for the 06/30/2015 reporting period, and noticed that Yahoo! Inc. (NASD: YHOO) was held by 12 of these funds. When hedge fund managers appear to be thinking...
TechCrunch  Aug 14  Comment 
 If you were intrigued by Livetext, the audio-free video messaging app launched by Yahoo last month, but don’t live in the U.S. or the handful of test markets where it was available, then we have good news for you. The app is now live...




 

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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