Master stock-mover James Cramer came out in support of YHOO Friday morning, and the stock slid up a fifth of a percent. Cramer's feeling is that YHOO has pulled even with GOOG in terms of multiples of projected earnings, and that if Google stock moves up from here, Yahoo! stock should stop diverging and move in tandem. Cramer also notes that the ongoing bloodbath in the newspaper industry should work in Yahoo!'s favor more than in Google's . . . because Google competes more on the content side than on the advertising side. In other words, Google News is more damaging to newspapers than Google AdWords. Anyway, YHOO stock is still bouncing against a mid-term support level of about $31.
Cramer: Yahoo! Is Too Cheap vs. GOOG
Reader Comments
(Page 1)2. I don't really understand the newspaper reasoning. The Denver Post practically begged me to subscribe to their paper at $20 for 6 months. I don't know why I did because it's such a waste of paper when I can find the exact same information online for free.
4. YAHOO 6.0 AND 7.0 IS MAKING MY COMPUTER CRASH.. IS ANYONE ELSE EXPERIENCING THIS? WHAT CAN I DO ABOUT IT?
Posted at 4:42AM on Dec 19th 2005 by Shay
5. >Google News is more damaging than Google AdWords
Well that is only if they are no good at selling ad inventory on their news site, right?
Isn't that the whole problem newspapers are facing, that they are no good at selling their ad inventory due to laziness and market inefficiencies.
Posted at 4:42AM on Dec 19th 2005 by aaron wall
6. Cramer is being stupid here. Modern newspapers live off their ad revenues, so to suppose that adsense does not threaten their profitability at least as much as google news, requires more demonstration than the touter's mere sayso. T.
v preachers and t.v. stock analysts: they prey on the gullibility of the public.
Posted at 4:42AM on Dec 19th 2005 by Luke Lea
1. I don't think, that Yahoo! is too cheap compared to Google. Google's P/E at 37 is only slightly higher than the one of Yahoo! at 31. At the same time Google has grown its EBITDA 112% the last year, while Yahoo! has "only" grown EBITDA by 57%. Isn't it totally fair, that Google holds a premium compared to Yahoo!? I personlly think that P/E of 37 is cheap for a conpany growing 112% yearly compared to Yahoo!'s P/E of 31 and annual growth of 57%.
Note: I calculate P/E by taking the last quarter's EBITDA multiplying by four and dividing this into the market capitalization.
More about it here: http://investinsearch.blogspot.com/2005/09/google-back-above-300-options-and.html
Posted at 4:42AM on Dec 19th 2005 by Anders Kargaard Jensen