Why is Google "worth" more than Yahoo?

[mnymkr]

It seems that Yahoo has more diversification and is on top of every major trend in the online world. I really do not understand why their stock is so much lower than googles.

[digiseek]

There are many factors that will affect the stock price.

[ArcticPro]

Google has grown faster than Yahoo to earn about the same in less time. Stock people look for growth.

[Wal-Martian]

Literally the bottom line.

Google makes more money than Yahoo!

[dhruv37]

I think because traffic on google is double than yahooo.....

[unlisted80]

I think because traffic on google is double than yahooo.....


I thought yahoo is rank #1 in alexa :confused:

[Bundy]

Alexa has separate rank for Google's com, co.uk, etc...

[clenard]

I think because traffic on google is double than yahooo.....

That doesn't have anything to do with their stock prices... their 5-year outlook and having their hands in everything is what has made them who they are.

[zarul shahrin]

I think because traffic on google is double than yahooo.....

Exactly~! Its not only the traffic is double but also the quality of the results. From the admin point of view, it is not easy to be ranked well on Google and for that reason it is more challenging, something that is not easy to get will normally worth more than anything else (and of course the ROI is great too!!!). In user point of view, they will be happy to find what they are looking for without clicking too much. Anyway, there is actually too many reasons why Google is more worthy than Yahoo.

[kirby009]

google is adding more to the web them yahoo. yahoo just deals with the basics.

[FlyingBear]

google is adding more to the web them yahoo. yahoo just deals with the basics.

that's not really true. google is a search engine. yahoo and MSN are more like a portal than search engine. google put their hands in so many things, and is supposed to bring more profit.

Bear

[Technomaniac]

that's not really true. google is a search engine. yahoo and MSN are more like a portal than search engine. google put their hands in so many things, and is supposed to bring more profit.

Bear

I personnaly feel that although Yahoo is much more than a Search Engine, but Google is very rapidly getting into a lot many things and with much enhanced quality of service. just take the example of GMail. Yahoo mail is no match for GMail.

[Technomaniac]

that's not really true. google is a search engine. yahoo and MSN are more like a portal than search engine. google put their hands in so many things, and is supposed to bring more profit.

Bear

Moreover, the Google Talk beta is also an innovation that requires you no other stand-alone messenger software to install, but you can chat from the same browser window. They are making the most of the new AJAX technology which is making wonders on the web development scene these days. So all these innovations are gonna attract much more traffic to Google and that means much more $$$$. Simple

[love_bug]

Knowledge and simplicity what man kind seek for!.. google simply has it and others don't
that's why yahoo sucks.. its not about $$$$
If you are successful enough..and can deliver what human whats $$$$ automatically kisses you ass...

[stock_post]

1) they are making money like there is no tomorrow

2) google Technology is better.

3) cost per $ made is less for google and so, the profit margin is higher.

Thanks

[MaverickConcepts]

1. google is more profitable
2. people (stock owners / buyers) believe it's going to make more

[i6six]

Yahoo | 2005 results
Total Revenue: 5.2 Billion USD
Gross Profit: 3.1 Billion USD

Yahoo | 2004 results
Total Revenue: 3.5 Billion USD
Gross Profit: 2.2 Billion USD

------------

Google | 2005 results
Total Revenue: 6.1 Billion USD
Gross Profit: 3.5 Billion USD

Google | 2004 results
Total Revenue: 3.1 Billion USD
Gross Profit: 1.7 Billion USD
-------------------------------------------

Google Market Cap/worth: $123 Billion
Yahoo Market Cap/worth: $34 Billion

You can see that both companies made similar profits in 2005, so why is Google valued nearly 4x more than Yahoo. The simple answer is growth. The fund managers/investment banks who are holding onto GOOGLE stock actually believe that in a few years, their revenues will quadtriple or more. This is why its worth 4x more than Yahoo's stock.

Most stock buyers look for growth when buying stocks. Look at Google's revenue and profit from just 1 year ago, you can see they have basically doubled their revenue and profit. Yahoo is more established and been in the search game way longer than Google, but look at how fast Google is catching up to them and has surpassed them in earnings.This is why they're currently worth much more than Yahoo.

*Reference:
http://finance.google.com/finance?q=YHOO
http://finance.google.com/finance?q=GOOG

[menj1980]

Google is the Name of the Game.

- MENJ

[North Carolina SEO]

Google is "it" for now. Maybe different later but, not at this point in time. ;)

[emz]

Its because Yahoo doesn't index my site

[codeber]

Yahoo has had some setbacks in the past which forced it to shut some non-us operations.

Thats why its moving tentatively over its YPN. Starting in the US first then expanding.

Thats what was said in a business interview on UK tv about their recent results.

[chewbacca]

I thought yahoo is rank #1 in alexa :confused:
Alexa doesn't measure things properly. :rolleyes:

Didn't Yahoo! formerly use Google as its search engine?

Whoever said Google has better technologies is right. I think their engineers are more creative and innovative because they use what's available to most people. You don't need to download a Google Messenger or Flash to use Talk or Local, respectively, unlike Yahoo! Messenger and Yahoo! Maps.

[ReadyToGo]

It seems that Yahoo has more diversification and is on top of every major trend in the online world. I really do not understand why their stock is so much lower than googles.
FYI, just because a company's share price is higher than another, it does not mean that it's worth more.
You have to multiply the current share price by the total numbers of shares outstanding. This figure is the market capitalization.
If you want to get technical, there's a term called "enterprise value" which puts cash, debt, etc. into perspective. This is probably the most accurate figure you can use to measure a company's value.

[hhheng]

Google is specialized in searching, while Yahoo trys to cover its business to every area. Actually this will dilute its importance in every area.

Also Yahoo was famous due to its searching function, but it can't see the importance of search in IT market, and instead it placed its foot on other areas and finally missed the chance.

Until today, I'm still thinking yahoo is not better than google, even worse than ebay. Future IT shall be focused on one product or service.

[samantha pia]

google has a condom
yahoo sucks
msn brings up the rear.
god i spend to much time on my sexual health site

[jacobbannier]

Googe has so much stuff, which targets a lot of different users such as webmasters, groups, everyone really. I think google is better :P