I was on CNBC tonight making the bullish case for Yahoo:
- Yahoo needs to grow earnings faster than Google to regain investor interest
- It can do that by cutting costs, growing audience, acquisitions or improving monetization (or some combination of all four)
- It is easier to drive monetization than to increase audience markedly, and acquisitions are a mug’s game without better monetization tools. Cutting costs is a non-starter.
- Yahoo trumps Google on total audience, as well as page views
- Yahoo’s monetization is about to improve (to some degree) because of Panama
- It is easier for Yahoo to make a significant improvement in monetization than it is for Google.
- Google’s monetization engine works well, while Yahoo’s doesn’t. It’s always easier to get a big change from a crummy start position than it is to make a big change from a great start position.
- Yahoo’s stock is hated, while Google’s is loved.
- Yahoo will outperform Google (and the market) in 2007