November 19, 2008, 6:00 am

Is it time to celebrate for Yahoo!(YHOO) ????

by: The Financial Blogger    Category: Investment, Market and Risk,Trading
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How would you feel today if you were Terry Yang, the founder of Yahoo!? Why do I ask? Well simply because Terry Yang announced he would resign from the CEO position and the market reacted by adding $1,8 Billion of market value to the stock. Was Yang’s contribution really that bad? Just a small fact that speaks volumes: Yahoo has lost over $20 billion in value in the less than 2 years since Yang’s return. Sure, the past few months at Yahoo have been a true fiasco, and it is easy to understand how ousting the CEO might change things, but how much?

A lot of hopes are on a renewed bid by Microsoft(MSFT) but considering how things went last time, it’s difficult to say if that could happen. True, the main reason that the bid for Yahoo! Failed was probably the determination of Yang in convincing investors and employees that Yahoo was better off on its own.

But since then, things have been very bad at Yahoo with many key employees leaving the company and the company focusing on increasingly short term moves to improve its position in regards to MSFT like the now failed advertising deal with Google that many viewed on Yahoo giving up on many of its ambitions in the search advertising field.

And let’s be honest, Yahoo’s recent results are not exceptional:

FQ3 2008

FQ2 2008

FQ1 2008

FQ4 2007

Revenue

1,786

1,798

1,818

1,832

Revenue Growth

-0.65%

-1.07%

-0.79%

3.65%

Gross Margin

56.77

57.40

58.46

61.69

Research & Development

323

315

306

289

R&D/Sales (%)

18.09%

17.50%

16.81%

15.77%

SG&A

944

932

925

939

SGA&/Sales (%)

52.84%

51.81%

50.89%

51.25%

EBITDA

278

304

325

369

EBITDA/Sales (%)

15.55%

16.90%

17.88%

20.14%

Operating Margin

3.93%

5.59%

7.57%

10.44%

Pretax Margin

16.23%

17.99%

19.19%

14.35%

Tax Rate

19.91%

20.17%

22.11%

33.72%

Net Margin

3.04%

7.30%

29.83%

11.23%

EPS excl Extraordinary Items (not diluted)

0.04

0.1

0.41

0.15

EPS Growth (%)

-60.00%

-75.61%

173.33%

36.36%

And overall, it seems like Yahoo is losing ground in so many areas. Take the highly profitable finance sector. One year ago, it seemed crazy for Google to even enter that market as Yahoo was so dominant. A few months later, there are less and less reasons to go to Yahoo finance. And that pattern has been occurring over and over giving doubts to even those, who like Jerry Yang, “bleed purple”.

I guess we will have to wait to see the next CEO of Yahoo to get a better idea of the new company direction, its strategic plans and how it will be able to compete better with rivals Google and Microsoft and even possibly try to get itself bought by Microsoft….

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Comments

I believe it’s Jerry Yang…..not Terry.

oops typo, it’s been corrected, thanks

still sees couple “Terry Yang” 🙂

He shares the same name as me (Jerry), don’t get it wrong 😛

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[…] Blogger asks is it time to celebrate Yahoo? He’s talking about the departure of Terry Yang.  I’d say it is too late to celebrate – […]

[…] Financial Blogger from the Financial Blogger asks “Is it time to celebrate for Yahoo?”  He says the resignation of CEO Terry Yang stimulated an increase in the market value of […]

by: just a name | August 13th, 2009 (8:04 pm)

I don’t know about you but I love making a statement…In these crazy economic times did ya ever want to send a message to the world about what’s really going on and what is wrong… I made a wish this morning and here is what it is… I am going to send this email to everybody I know cause it would really be funny to see this happen.

By now everyone knows that GM’s stock is worthless. It is trading as MTLQQ.. Liquidation is in process and this stock is linked to the air. I would love to see it make the news and go up to $6.00 a share.. We the little people who believe in American can really make a statement. If one person out of every 1000 who read this buy 1000 shares OH MY GOODNESS we will make the news… Wanna have laugh and make some money….try it and we can all say we did it. The lil people…