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.
Google has grown faster than Yahoo to earn about the same in less time. Stock people look for growth.
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.
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.
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.
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 $$$$. Simple
Knowledge and simplicity what man kind seek for!.. google simply has it and others don't that's why yahoo sucks.. its not about $$$$ If you are successful enough..and can deliver what human whats $$$$ automatically kisses you ass...
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
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