CompuWorld

“Yahoo touches one out of every two people on the Internet every month, which is unparalleled reach. Despite the fact that Yahoo actually has more traffic than Google, Google has more revenue. So there definitely is a problem with Yahoo’s monetization."

“The main problem is that Yahoo has not been nearly as good as Google at reaping profits from the huge volume of search traffic it attracts. Yahoo’s search revenue in the third quarter was $191 million, versus $911 million for Google. The industry’s growth rate is catching up with Yahoo’s in this area. When someone’s growth rate is declining, it’s hard to know where the bottom is. Still, Wall Street’s worries about this seem overdone, creating a buying opportunity at the beginning of a traditionally strong holiday period for the Internet” Justin Post, a Merrill Lynch analyst in San Francisco, said.

Source: SoftPedia

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