6.11.2007

Yahoo Kicks Itself While Down

In a tiny bit of irony, Yahoo currently has a link on its finance homepage for the article titled: "Yahoo CEO Faces Shareholder Backlash". Other than the humor of Yahoo putting bad news about itself on its own website, it shows a disturbing trend for Yahoo supporters. Most people know this but Yahoo's market share has eroded quite a bit to upstart Google since 2004.

From the AP: "The IPO gave Google a market value of $23 billion compared with $39 billion for Yahoo at the time. Google's stock price has increased by more than sixfold since then, creating nearly $140 billion in additional shareholder wealth. Meanwhile, Yahoo's stock price has fallen by about 4 percent during the same period, leaving the company with a market value of $37 billion."

Its funny, while I do think Yahoo currently has more products to offer than Google, there are two differences that separate the two. When Google releases a new product or a similar product to Yahoo, it is much more intuitive and higher quality (Google Earth v. Yahoo's Mapquest). The second thing is when Google releases products they know how to make money off of it (Mostly by their unobtrusive text ads).

While Yahoo is down, they are by no means out. However, I do hope their products and business structure improves so they can give Google a greater run for their money. That would make both businesses more competitive and therefore better for the internet consumer in the long run.

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