Recent News

Here We Are Mentioned in AM New York in Karen SalmanSohn's column The One Minute Career Therapist.
Home Neubert's Trades Yahoo Blows Away Google in Time Spent Online but Not on Valuation
Yahoo Blows Away Google in Time Spent Online but Not on Valuation
User Rating: / 0
PoorBest 
Written by David Neubert   

As I go over Yahoo (YHOO) earnings data I was happy to see a decent increase in revenues even if earnings disappointed.  However, it does seem that Google (GOOG) looks like the better value.  (According to First Call, Google has a 2007 P/E of 35 vs. 52 for Yahoo).  Then I came across the following blog entry by Jay Meattle at Compete.comHe shows top 20 US website usage ranked by time spent on line.  MySpace, owned by Newscorp (NWS), comes in first at 11.9%. Second place belongs to Yahoo at 8.5%, four times the amount of time spent on Google (fifth place) at only 2.1%.  These kinds of numbers continue to disappoint me in Yahoo's management who can't seem to monetize such an industry leading position.  My support of shareholder activist Eric Jackson's Plan B to change Yahoo strategy continues as the best way to extract value from Yahoo.

This is duplicated on my personal blog at davidneubert.com.

Disclosures and Confessions:  I own Yahoo and plan to pledge my shares to the campaign.  However, if the shares rise above $35 I'm likely to start selling.  I'm short Jan 2008 35 strike calls against half my position of YHOO and am also short Jan 2008 30 strike puts.  I do not own Google (GOOG) but have traded it (both short and long) in the last two years.  I do not own News Corp (NWS) nor have I traded it in the past two years.

I like Yahoo!.  For years MyYahoo.com has been my browser startup page; I pay to use Yahoo enhanced email; I have over 2000 photos on flickr; I find Yahoo finance to be almost as good as Bloomberg but without the $1800 a month price tag; I have  even been using Yahoo's search recently and find it so greatly improved that I don't need Google as much, I have registered websites using Yahoo.

Disclaimer:  Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell.  I do not give investment advice.  Do your own research.  Do not rely on anything in this weblog to make investment decisions.  I do not log all my trades here. I only describe or mention those that I think might be interesting. Consult an investment professional familiar with your specific financial situation before buying or selling any security.

 Keywords: Shareholder Activism, YHOO, GOOG, NWS, Eric Jackson, Plan B,