That depends on your time horizon. For the next quarter or two Yahoo will most likely not perform at Google's level. They have seen many set backs lately--the delay of their new ad search program "Panama", a lack of deal making with hot, new sites like MySpace and YouTube and Facebook. Over the long run, though, there are a lot of things that will support Yahoo! in the competition against Google. First of all, Yahoo is the most popular web site on the internet. Also Yahoo is more of a web portal while Google is more of a search engine. Google's product line is also immature. They have a slew of products, but they are all buried within the search site and most of them have been in beta for years. Also, when Yahoo! releases Panama to compete with Google's Adsense next year, their revenue will see more growth. And perhaps, though few people seem to think so now, Yahoo! has been wise to largely stay out of the big acquisitions as of late. Internet users tend to be fickle so what is hot now may fall out of favor next year. YouTube should be an interesting thing to watch. It was a risky bet by Google seeing as there really isn't much special about YouTube. It is a forum where people can post videos, but new and better forums can come along easily. I'm also interested to see how users respond to the "Google-ized" YouTube that is sure to have more advertisements. These ads will be necessary for two reasons. 1) Google did not pay $1.65 billion for an investment without planning on getting a greater return. 2) If Google wants to appease the media companies whose copyrighted material is very popular on YouTube then they better show ads in order to pay for the rights to show that material. Certainly, though, Google and Yahoo will be locked in fierce competition for some time. I think, however, that there is room for both on the internet. It's not as if only one can exist. Look at any industry, there are usually a few big competitors and some lesser ones. I think in the internet industry Yahoo and Google are and will continue to be those big competitors.
2006-10-17 08:57:31
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answer #1
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answered by jthomas1279 2
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No. Google is going to kick Yahoo's butt. Not only will Yahoo's earnings decline, but Google's will increase.
Just take a look at the products each is offering and how well they run. Then you'll have your answer.
2006-10-17 19:54:20
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answer #2
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answered by Yada Yada Yada 7
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Surely the market place is large enough for both, don't you think? Google is currently the darling of Wall Street. That could change in a heart beat. Yahoo is currently out of favor with Wall Street. That will take a little more time to change.
2006-10-17 08:34:47
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answer #3
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answered by Anonymous
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