How did Yahoo survive when so many dot.com companies went belly up in the late eighties amd late nineties?

Question

And yet not only did yahoo qwhich was a company doing that era it survived it made a profit; when it seems a lot of companies were not keeping thair heads above water.

Answer 1

Yahoo was basically formed as a search engine (from what I remember). Yahoo relies on creating ad's for other companies. It takes money from people to put the ad's (link) in there database. This, in turn, makes the site easily accessible to people around the world, which, then gives the site more traffic and business. By adding other services on yahoo, such as web hosting, email, etc.. yahoo becomes more flexible to all the different things that people want. And, if yahoo has what people want, then they make profit from it.

Answer 2

Many of those .com companies were nothing more than people trying to take investors money. Lots of people got burned and investors pulled out and that's why so many went bust. What happens is that a couple of guys start a website. They register a company for $50, and then they go public. The SEC approves it and they get a whole pile of money from people who think that they can make money. The guys have more money than they know what to do with. They jump ship, take the money and move to Cuba. The investors lose their investment and it turns people off the .com boom. .com loses investment and many go belly-up. Other companies such as Yahoo! were legit and they had a sound business model.

Answer 3

Probably made a profit due to many factors.

I do believe they escaped the bomb because sales of products was not their primary market. Sales of advertising/listings maybe was their primary market. They were also relativly establish at the time, i.e. well known with a large user base.
http://en.wikipedia.org/wiki/Yahoo

Amazon ran at a loss for 7 years before they started to turn a profit.

The bombs probably bomded due to poor financial decisions like overspending for customers that didn't exist yet.