QUOTE AND NEWS
Benzinga  4 hrs ago  Comment 
BMO Capital reiterated its Market Perform on Yahoo! Inc. (NASDAQ: YHOO) and lifted its price target to $39 from $38. In the report, the analysts described the company's Q2 results announcement as lacking news on the core business sale...
Clusterstock  4 hrs ago  Comment 
Yahoo reported its second-quarter earnings Monday, and as expected Wall Street is not too impressed. Most of the analyst notes in reaction shared concerns over Yahoo's deteriorating business. The company saw declines across the board, including...
Yahoo  6 hrs ago  Comment 
Yahoo Finance is tracking the stocks you’re following, based on your Yahoo Finance ticker searches.
Benzinga  6 hrs ago  Comment 
Yahoo! Inc. (NASDAQ: YHOO) reported better-than-expected EBITDA for 2Q, driven by higher margins due to headcount reductions. Oppenheimer’s Jason Helfstein reiterated an Outperform rating on the company, with a price target of $49. 2Q...
Reuters  7 hrs ago  Comment 
* Yahoo's goal is to finish the bidding process by the end of July - CNBC, citing sources Source text - http://cnb.cx/2a5WNeh Further company coverage: (Bengaluru Newsroom: +1 646 223 8780)
Forbes  7 hrs ago  Comment 
CEO Marissa Mayer’s time at Yahoo may have been troubled but its not over yet, as the company failed to report any real developments in the ongoing bidding process for its core assets at the earnings call.
The Economic Times  Jul 19  Comment 
The company, long since eclipsed by Google and Facebook, now commands just a tiny fraction of people’s attention and advertisers’ dollars.
The Economic Times  Jul 19  Comment 
Yahoo said Monday its loss in the second quarter widened to $440 million from $22 million a year earlier, while offering no definitive news on efforts to sell its core Internet business.
MarketWatch  Jul 19  Comment 
New messy elements in Yahoo Inc.’s quarterly earnings may explain why the company still has not yet reached a deal to sell its core business and why Chief Executive Marissa Mayer is unlikely to keep her job in any kind of deal.




 

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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