Google has a market cap of 142B, Yahoo 43B. Why is yahoo worthless?

Question

Market capitalization is the total amount a company is worth on the stock market. Number of shares times the price of the shares.

Google is worth more than Yahoo. Yahoo is worthless.

Why do you think that is?

Is it because Yahoo has such a subjective, anti-free speech content that addresses itself to such a narrow band of users?

Is it because Google has created a business model that addresses primarily business users while maintaining content for the broad range of non-business users?

Is it some other issue?

Let me know. It looks like Yahoo might be on an upward trend and I am wondering if it has long term potential or if it is just going to flounder again.

thanks

I know the question is tongue in cheek sarcasm. That does not make the question irrelevant, it makes the question irreverent.

Thanks!

I was hoping the slight mis spelling would get some good answers from real people and I tend to agree. Looks like Yahoo is a good longer term play.

I need to do some more research on these management changes though. This might be more investor speculation on change and not good management.

Thanks!

Kirk: That is Market Cap, you can check the numbers it is 3X. I am glad I don't own either yet. At the end of the day I am down, but only a little over a percent. I hope you all did at least as well.

Answer 1

Personally, I think google is way overpriced at the moment and wouldn't buy shares in them at all. And the've gone down $8.50 today, but then damn near everyone has gone down today. (Yahoo is down .34 today).

And I agree with you, I think Yahoo is on an upward trend. I don't own any of their stock. But it's one I've considered. I just always managed to buy something else.

If you have access to Motley Fool Stock Advisor, go read their stuff on Yahoo. They recommended in in August of last year. It's gone up 21.95% since the recommendation.

By the way, I think even non-Motley Fool members can access the CAPS game on Motley Fool so you'll likely find a lot of good commentary there on both stocks.

Answer 2

(amused)
If 43Bn is "worthless", I will be happy to take it off their hands.

Yahoo has recently dumped some of its key management, and seems to be revamping itself to be a content provider, this forum as an example.

Google is choosing to avoid that for now, as they are sticking with thier simple, clean schtick.

Personally, as a news buff, google sucks. Yahoo news is outstanding. It is the closest thing to a true virtual newspaper I have seen, well organized and with some key features that are very useful.

Same thing with their finance section.

Google is retaining its focus, but Yahoo is changing and growing.

Long term, I would bet on change and growth. I agree the "googster" is overrated.

Answer 3

you have to also remember the GOOG float is a lot smaller than YHOO's. which means less shares to trade which means much higher volatility. GOOG still a relative infant in the trading world, so this might be cause for its over valuation in my opinion. at the end of the i still think GOOG > YHOO but not by 3x!!!!

Answer 4

obviously, yahoo not worthless (34b). remember, in tech bubble had any number of internet companies that were worth more than huge "real" companies, but things came back to earth, they always do....