>>Analysts such as Montgomery, however, also say that Yahoo needs to diversify their revenue base and can count on less than expected growth in internet advertising.
I deal with Montgomery, and they've made no such assertion. They are saying, though, that the revenue base will expand beyond advertising revenue, and that advertising revenue itself is growing faster than expected.
>> Who hasn't heard of Yahoo!?
That's a big plus. Levi's, Coke, ESPN, MTV, etc... Brands are worth alot.
>>That doesn't make it a bad company, just a speculatively valued one.
Yahoo is indeed a speculatively-valued stock. It's priced on expected growth. Every growth stock is.
>>E-commerce will grow but the ad revenue model for site 'hits' may not work out in the end.
In their June conference call, E*Trade said that 8,000 leads and over 400 new accounts were generated from the Yahoo site in the second quarter alone. |
