QUOTE AND NEWS
TechCrunch  1 hr ago  Comment 
 Secret has a new update out for Android, with an iOS equivalent arriving sometime next week. The app changes include the addition of Flickr image search, which requires the “exchange” of the ability to use pics from your photo library, in a...
Jutia Group  4 hrs ago  Comment 
[at TheStreet] - Yahoo! must capitalize on its recent Taylor Swift buzz with a real live concert streaming strategy. If not, Yahoo! Screen might never get off the ground. Read more on this. Yahoo! Inc. (YHOO), valued at $37.62B, opened this...
Jutia Group  Aug 21  Comment 
[Zacks] - Yahoo CEO Marissa Mayer has sold over a million dollars worth of YHOO stock, is this something to be worried about? Read more on this. Yahoo! Inc. (YHOO), with a current value of $37.48B, opened at $37.65.   Shares have traded today...
TheStreet.com  Aug 21  Comment 
NEW YORK (TheStreet) -- TheStreet Ratings team rates Yahoo Inc.a aas a "buy" with a ratings score of B. Shares of Yahoo are up 0.21% to $37.58 in early afternoon trading on Thursday.a TheStreet Ratings Team has this to say about their...
Forbes  Aug 21  Comment 
Yahoo paid about the same price for Tumblr, around $1 billion, as Facebook did when it acquired Instagram, and the two had similar numbers of users at the time of acquisition, in the realm of 30 million.
SeekingAlpha  Aug 21  Comment 
By Don Dion: Not too many years ago, Yahoo!'s (NASDAQ:YHOO) future looked highly uncertain. Today, the company is on the road to establishing itself more fully, having put a great deal of effort into mastering a variety of methods for creating...
TheStreet.com  Aug 20  Comment 
NEW YORK (TheStreet) -- Last week, I read this article about Jeff Weiner's comments at a Pando fireside chat. It had the long but intriguing title: "Jeff Weiner never wanted to work at Yahoo, but it's the best thing that ever happened to...
Jutia Group  Aug 19  Comment 
[at TheStreet] - Yahoo! has been tiptoeing into original Web content creation but made a bang Monday evening with its live stream event featuring Taylor Swift. Read more on this. Yahoo! Inc. (YHOO), currently valued at $37.63B, began trading this...
Forbes  Aug 19  Comment 
The company has been trying to boost user engagement, increase unique user count and monetize its content more effectively. While it was successful in boosting its unique mobile user count from 200 million in Q2 2012 to over 450 million in Q2...
Forbes  Aug 19  Comment 
The World Wide Web is officially a quarter of a century old, and it’s safe to say that the world we know today would be dramatically different without Tim Berners-Lee’s invention. In its short lifespan of 25 years, we’ve seen the dot-com...




 

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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