QUOTE AND NEWS
TheStreet.com  1 hr ago  Comment 
SAN DIEGO, Calif. (TheStreet) -- Come Tuesday afternoon, Yahoo! will present investors with another lackluster three months of results from itsaslumpingacore display and search businesses, but Wall Street will barely bat an eye. At least that's...
Jutia Group  5 hrs ago  Comment 
[at TheStreet] - Yahoo (YHOO) shares are rising following reports that the company will detail its cost cutting measures tomorrow. Read more on this. Yahoo! Inc. (YHOO), with a current market cap of $38.53B, started trading this morning at...
TheStreet.com  5 hrs ago  Comment 
NEW YORK (TheStreet) -- Yahoo shares are up 1% to $38.83 on Monday after it was reported that the company will outline cost cutting measures and detail its potential acquisition evaluation process on Tuesday, according toathe Wall Street...
TechCrunch  5 hrs ago  Comment 
 Lobster hopes to take advantage of the wide array of content users are already freely posting on apps like Instagram or on sites like Flickr… and to help them make a little bit of money on it. And all they have to do is add the #ilobsterit...
TechCrunch  6 hrs ago  Comment 
 While on-stage today at TechCrunch’s Disrupt Europe conference, AOL CEO Tim Armstrong dismissed the latest rumors that Yahoo and AOL might merge. Specifically, Armstrong said AOL has a board meeting tonight (I guess he’s flying back to New...
Market Intelligence Center  7 hrs ago  Comment 
Monday headlines include: a dismal quarter from IBM, Halliburton and Valeant beating estimates, Sears raising $625 million and Yahoo planning to announce cost cuts. International Business Machines Tech giant International Business Machines (IBM)...
TechCrunch  8 hrs ago  Comment 
 Use email? Own an Android device? Not a fan of Gmail? There’s good news coming your way. Google is preparing a major update for Gmail for Android that will, among many things, finally handle email accounts from other service providers, such...
SeekingAlpha  11 hrs ago  Comment 
By WestEnd511: Yahoo! (NASDAQ:YHOO) will report 3Q14 results on Tuesday with consensus expecting EPS of $0.30 on $1.04b in revenue (-3.3% y/y). The stock has largely underperformed the broader Nasdaq, down 5% for the year, as its core business of...
Yahoo  Oct 20  Comment 
Yahoo is considering acquiring one or more large technology startups with some of the $5.8 billion it made from the initial public offering of Alibaba Group Holding Ltd, the newspaper said. Representatives at Yahoo did not immediately respond to...




 

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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