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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (23281)2/4/2006 5:30:36 PM
From: blankmind  Read Replies (1) of 78621
 
Spek,

- Agreed on yahoo - i use it for everythign you mentioned - and then I use Google for nearly 100% of shopping and searches - both sites make a ton of $$

- I’m doing a quick comparison of 2005 results - Yahoo’s revs grew an impressive 50% or so - from $3.6 bill to $5.3 bill; but Goog grew about 90% - $3.2 bill in '04 to $6.1 billin '05 - so on revenues - Google beats yahoo in gross & growth

- on profits - yahoo made $1.9 bill in ’05 - for $1.28 diluted; vs. Goog earned $1.5 bill for $5.02 diluted - at first glance - it appears yahoo is doing better - but Goog’s earnings are growing much faster - Yahoo went from earning $839.6 mill in ‘04 to $1.9 bill in ‘05 - but Goog went from $399.9 mill to $1.5 bill

- actually - on historical p/e’s - yahoo’s is a reasonable 27 - but Goog’s is close to 76 -

- Based on the above numbers - they’re both making tons of $$’s - & have excellent business models - yahoo’s p/e is much lower - Goog’s earnings & revenues are outpacing yahoo’s - so I’m going w/ Google - as I think Google revs & profits will continue for some time - good luck
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