How Do You See Yahoo's Future?

Yahoo! looks like a company that is going to conquer the entire Internet over the years, but there are elements that are describing exactly the atmosphere that exists in the internal organization. The Peanut Butter Manifesto and - as specialists entitle it - a further growth slowdown in two areas, are giving details about how things are going on at Yahoo.

A few analysts talked for New York Times about the future of the company.

"The main problem is that Yahoo has not been nearly as good as Google at reaping profits from the huge volume of search traffic it attracts. Yahoo's search revenue in the third quarter was $191 million, versus $911 million for Google. The industry's growth rate is catching up with Yahoo's in this area. When someone's growth rate is declining, it's hard to know where the bottom is. Still, Wall Street's worries about this seem overdone, creating a buying opportunity at the beginning of a traditionally strong holiday period for the Internet," Justin Post, a Merrill Lynch analyst in San Francisco, said.

"Yahoo touches one out of every two people on the Internet every month, which is unparalleled reach. Despite the fact that Yahoo actually has more traffic than Google, Google has more revenue. So there definitely is a problem with Yahoo's monetization.
If you have a traffic problem, then you have a fundamental business problem because you have nothing to convert into revenue dollars. But if you have a monetization problem, which is what Yahoo effectively has, you always have options," mentioned Randy Befumo, a co-director of research at Legg Mason, with about 40 million Yahoo shares.

So, nobody can know, but everybody gives his opinion. We have nothing else to do but wait and see what will happen with the biggest Internet portal.