YHOO - Worth a second look? Not right now..

Discussion in 'Stocks' started by Comptalk, Apr 21, 2007.

  1. OK, so I was reading in Barron's that looks in to YHOO at these levels. Discussing how revenue is down on display ads and such. I think I know why. Last year they purchased a 20% interest in Right Media (a online exchange which will now probably die a slow death due to Google's DoubleClick). YHOO cannot afford to go and fight Google one on one. They would be crushed. Their display revenue is down because they are giving it to this Right Media which is some how auctioning off each impression to become cost effective for the advertiser. For the advertiser, I guess this is good. For YHOO this is bad. If you look at their revenue from display advertising BEFORE they did this wonderful deal, they were earning more than double. Now, instead of getting paid 1.00 + for impressions, they are getting paid a fraction of this. This was the wost deal they could do. It is effecting their bottom line and will continue to hurt them until they reverse this trend. I really think Mr. Semel has overstayed his welcome. His business ideas are in dreamworld.
     
  2. Yea yahoo sucks