Yahoo a better Stock than Google

Thread Title:
Yahoo raised Google stands still
Thread Description:

Forbes are reporting that Merrill Lynch have upgraded Yahoo! to buy from neutral whilst also lowering Google to neutral.

They go on to say:

we are more comfortable with Yahoo!'s experienced management, focus on free cash flow and diversified (and economic) business model. As such, we believe Yahoo! should trade at a premium to Google. Further, we think Yahoo's growth prospects are superior.

Where would you put your money at the moment?


Yahoo growth

We've been reporting on a whole slew of stories on a vaguely "pro Y anti G" theme...

Google continue to dominate the news with interesting stuff but as is their way, no apparent business model for any of it - Yahoo on the other hand have been making steady but less notable stories with more "investor friendly" angles.

I was reading today some of Niki Scevaks thoughts on money in Search and this particularly caught my eye:

Google unveiled an amazing product today that lets people search a slice of American television content. In the future they will no doubt enable the viewing of short video clips and expand their index beyond said sample of American TV content. They will not make money by slapping adwords alongside results.

Just as they will not make money slapping adwords alongside desktop search results. The reason is very simple. Search advertising is entirely devoted to being displayed alongside search queries that identify a user is in the midst of making a purchasing decision. For a camera, an accounting system or a car, for example. At the heart of it the consumer is looking to buy a product or service.

Every ad dollar is devoted to this sliver of search activity.

Yahoo's more "media oriented" model seems more robust..

did that make sense? im hardly a financial whizz heh..

Google full 2004 Financials

on Feb 1st...

Webcast: The live Webcast of Google's earnings conference call can be accessed at The Webcast version of the conference call will be available through the same link for approximately two weeks following the conference call, after which time Google will include the Webcast in the "archive" section of the Google Investor Relations website.


I seriously think it also has to do with the potential for marginal change.
Google is cresting at a high number and from what I have heard Larry and Sergi follow the Warren Buffet approach of no splitting, so the margins are always going to be smaller.
Yahoo is going to take a serious hit when MSN drops the Overture account.

Remember I mentioned Media?

This summer, the newly established media group for Sunnyvale, California-based Yahoo will move into 65,000 square feet of office space in Equity Office Properties Trust's (EOP.N: Quote, Profile, Research) Colorado Center in Santa Monica.

By 2008, Yahoo employees will occupy a total of 229,000 square feet in the office complex, to be renamed Yahoo Center, said Bert Dezzutti, a senior vice president for Equity Office.

I'd take Yahoo over Google

I see Yahoo more diversified and more experienced with monetizing. Yahoo makes money from ads, auctions, email, dating services etc. Google's only source of revenue is advertising (adwords, adsense and gmail).

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