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I can't understand why Google is currently $386.41 a share and Yahoo is $27.09 a share. Yahoo continues to drop to. Shed some light on the subject. Best answer will be voted best...

2006-07-31 05:00:21 · 5 answers · asked by nickster51875 3 in Business & Finance Corporations

5 answers

Comparing share prices is irrelevant - you have to compare market caps (basically, the total value of all outstanding shares). Right now, the market says Google is worth more than 3 times Yahoo. GOOG is doing a better job of monetizing its advertising, etc. Yahoo needs to play catch-up, but it's delaying its new products. If Yahoo can come back, the price of GOOG will fall and YHOO will rise - but the longer it takes YHOO to get its act together, the more likely it is that GOOG will eclipse Yahoo and the latter will simply disappear (most likely through an acquisition at a lower price). I'm betting YHOO can come back.

2006-07-31 05:50:34 · answer #1 · answered by Anonymous · 8 1

I think the fact that Google offers free products AND for profit products and services really helps them. They're not just selling ad space like Yahoo is but they're in the software business as well. Also, Yahoo has been having major operational issues lately with just about all of their services; especially Email. If these problems persist, that will push investor confidence WAY down.

2006-07-31 12:45:29 · answer #2 · answered by Report Abuse 6 · 0 0

Yahoo WAS that high. Take Google and Yahoo Answers for example.

Google charges people to ask questions, and the answers get paid.

Yahoo doesn't.

Thus Google makes money, and has a higher quality of questions. You don't get stupid stuff like "If I lit my tounge on fire, would it hurt?"

Yahoo is more consumer based, then money and power hungry.

2006-07-31 12:06:09 · answer #3 · answered by atcavage 2 · 0 0

Not a chance in this economy. Google is making money hand over fist so people are betting it higher as a result. Yahoo income slowed down and look where they are now. As soon as Google slows down to a realistic pace, their price will drop as well.

2006-07-31 12:03:02 · answer #4 · answered by Anonymous · 0 0

The stock market is not always what it seems. It is unlikely that yahoo will catch up with google (will this affect my rating here?) because historically yahoo has been on a downward spiral while google is doing gangbusters.

But... things change

2006-07-31 12:04:56 · answer #5 · answered by dinocruz53 2 · 0 0

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