Jutia Group  1 hr ago  Comment 
[Reuters] - Yahoo Inc shareholder Starboard Value LP said the company's spinoff of its stake in Alibaba Group Holding Ltd was a "good first step" but reiterated that the company remained undervalued. Starboard recommended that Yahoo "right-size"...
MarketWatch  2 hrs ago  Comment 
Activist investor Starboard Value LP said Monday that Yahoo Inc.'s decision to spin off its stake in Alibaba Group Holdings Inc. was a "good first step", but insisted there are other opportunities to create value for shareholders. In a letter to...
TechCrunch  Mar 7  Comment 
 Hello, readers. I was typing this to you from the back row of the Ellen Pao-Kleiner Perkins trial. (More on that later.) But isn’t it fascinating how wildly divergent the two leading women executives in tech are when it comes to thinking about...
Benzinga  Mar 6  Comment 
1. Shares of Yahoo! Inc (NASDAQ: YHOO) surged higher after an anonymous author explored a potential takeover of the company by Alibaba Group Holding Ltd's (NASDAQ: BABA) founder Jack Ma. "The acquisition of Yahoo is something I worked [on] a...
Jutia Group  Mar 6  Comment 
[at TheStreet] - Facebook has more than three times the revenue of Yahoo! but half the employees. It's time for CEO Marissa Mayer to take a blowtorch to excess costs. Read more on this. Yahoo! Inc. (YHOO), valued at $40.96B, started trading this...
TheStreet.com  Mar 6  Comment 
NEW YORK (TheStreet) -- Yahoo!'s core business is way overstaffed relative to its recent performance, but the company continues to ignore pleas to downsize. In the three years since CEO Marissa Mayer took over, Yahoo!'s direct and indirect...
Forbes  Mar 6  Comment 
The UK's National Crime Agency makes more than 50 arrests in one week as part of a crackdown on a range of cybercrime, including attacks on the US Department of Defense and Yahoo. A suspected member of juvenile hacker crew Lizard Squad was also...
Benzinga  Mar 5  Comment 
Noted journalist Steve Levy highlighted on Medium the accomplishments and focus of Yahoo! Inc. (NASDAQ: YHOO) CEO Marissa Mayer on the 20th anniversary of the company. Some of the key takeaways from his story are noted below: Mayer coined...
Forbes  Mar 4  Comment 
In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Yahoo! Inc. (NASD: YHOO) has taken over the #110 spot from Automatic Data Processing Inc. (NASD: ADP), according to The Online Investor. Click...
TechCrunch  Mar 4  Comment 
 Yesterday, Google announced a well overdue revamp of its Google Contacts service which introduced a redesign and a handful of new features, and today Yahoo is following up with some contacts-related news of its own. The company is now rolling...


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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