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Yahoo Weakens Over Competitors in the Ads Biz |
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Despite a new chief executive head of sales Yahoo is defeated by Google
and other sites like MySpace and Facebook in internet search and
revenue from banner ads. This risks its top spot in display
advertising. Yahoo is assessed as cheap by 18 analysts who rate the
stock per purchase and may even lessen the price further with its stock
trading decreased by 38% from its high rates in five years. Jerry Yang
is the newly appointed chief executive who is also Yahoo’s co-founder.
An analyst from Standard and Poor’s in New York, Scott Kessler advises
to hold on shares as he sees the potential of a further drop in stock.
Munder Capital Management’s director of technology, Ken Smith assess
the drop of US23 cents to $US26.97 in the shares of California-based
Yahoo and says that it is no bargain.
Yahoo with its 22% sales growth in 2006 has expanded at a pace only
one-third of Google’s. Merrill Lynch also calculated that Yahoo has
missed the 36% increase in the global internet advertising. Bloomberg
data shows six upgrades with seven downgrades despite the 35% drop in
shares.
Yahoo steps aside for Google in 2000 for the web search biz and has
agreed in using its rival’s results. In 2001 under the chairmanship of
Terry Semel, Yahoo has branched out into music and video facing a big
challenge from YouTube also owned by Google. However Yahoo hasn’t
expanded into social networking thus lesser ad spaces and giving it up
to MySpace and Facebook.
Joanna Stevens, Yahoo spokeswoman says they are seeing a change in
advertisers’ preferences in display ads as becoming experimental.
Vanessa Arellano Doctor
http://7seo.com - SEO Company |
