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| UPDATED: 2006-09-20 |
 Yahoo Warns Of A Bad Quarter 
By: Nathan Weinberg 2006-09-20 Yahoo is warning investors that, due to weak growth by auto and financial services companies will put a hit on the money it makes... ... from ad spending by those sectors, which should hurt third quarter earnings. Google investors: take note, because both companies get their cash from the same places. Could Google's third quarter be a dissapointment as well? The signs say it is very possible. Link: Yahoo is warning investors This got me to thinking: How similar are Yahoo and Google's earnings? Let's do a chart.  Google's earnings, in millions, for every single quarter since the third quarter of 2003: 2003: $394 | $512 2004: $652 | $700 | $806 | $1,032 2005: $1,257 | $1,384 | $1,578 | $1,919 2006: $2,253 | $2,456 Yahoo, in those same quarters: 2003: $356 | $663 2004: $758 | $832 | $906 | $1,077 2005: $1,173 | $1,253 | $1,330 | $1,501 2006: $1,567 | $1,575 So, while drops in one sorta might reflect in the other, it isn't exactly obvious or even conclusive. Maybe when the huge growth stops we can better compare the two. Either way, the chart clearly shows how Google is breaking away from Yahoo, and has been since early 2005. UPDATE: Yeah, Yahoo's stock didn't do so good on this news:  Yes, that is an 11.21% drop in value. UPDATE: Om says part of Yahoo's problem is that Yahoo Finance is a huge earner, making its money off advertising from financial services companies. With those companies having a hard time, the losses are passed onto Yahoo. I had no idea Finance was so important, and wonder why Google hasn't really pushed to be feature competitive with Yahoo's product. Scoble says that Yahoo's problems stem from the fact that their advertising is not targeted well enough (lots of banner ads) so as to be indispensable. Google's ads are sometimes the entire customer aquisition means of a business, because they tend to be very effective, while Yahoo's are more discretionary and brand-building. He's oversimplifying, but there are good points in there. Tag: Yahoo Add to  Del.icio.us |  Digg |  Yahoo! My Web |  FurlView All Articles by Nathan Weinberg About the Author: Nathan Weinberg writes the popular InsideGoogle blog, offering the latest news and insights about Google and search engines. Visit the InsideGoogle blog. |
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