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YHOO and GOOG
I posted on both these stocks last week. I bought YHOO and I am shaking my head on GOOG.
Today Saul Hansell weighs in on both in a front page business section story in the NY Times. I pulled this graphic from the story. Click on the grapic to get a popup that is easier to read.
This graphic shows that Yahoo! has a much bigger audience for the primary web services that both offer. But clearly Google's lead in search means more when it comes to revenues, earnings, and valuation.
But it still makes me feel good about my YHOO purchase last week.
Comments (2) | Posted July 24, 2006 in stocks , Venture Capital and Technology
Comments
The data that you report could be as interesting as misleading. When it come to a volatile market such as free (or "freemium") Internet Services (i.e. email account), it's very important to think in term of growth and trends rather than static data.
Of course Yahoo and MSN have a very strong market share in e-mail: they have been offering free account since forever, while Gmail is out there since what 20 months with a very selective (not so selective anymore) invitation system in order to avoid spammers. Based on a empiric evidence, I've known an impressive number of hotmail users who are switching to gmail even if they keep their msn account. And all these users are using more and more Google Talk via the web interface and the integration with e-mail.
In the "MAPS market" the research do not take into account all the GoogleMaps mash up which exploit the API interface (for instance Frappr.com exploit google maps but also popular services such as travelpod.com).
In the news segment and in all content-related segments Google has trouble to keep up: excellent algorithms are not so effective when it comes to build the next outsider for yahoo news or yahoo finance.
That said, I agree with you when you say that Yahoo has been punished too much recently. Just do not trust always Media Metrix numbers: they may lye.
Posted by: Daniele Della Seta | Jul 24, 2006 10:22:14 AM
Here's an interesting bit from a former Goldman analyst re Yahoo and the mobile market:
http://mp.blogs.com/mp/2006/07/s_18.html
Posted by: Mark Frisk | Jul 24, 2006 12:10:32 PM
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