Analysis of Yahoo share price

Well before its major competitors such as Google, an American technological company made the news by introducing its shares on the stock market, the Yahoo Company. This company still shows a continuous and sustained rise in its turnover each year and is still accessible to stock market investors, but it is also possible now to speculate on the movements in its share price using CFDs  on the online trading platforms.  

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Analysis N°1

As for the opportunities that Yahoo could seize, we will remember in particular its ability to position itself in emerging markets that are just discovering the Internet and that represent a privileged target for Yahoo.

Analysis N°2

Yahoo could also benefit from partnerships with technology companies to further diversify its integrated product line. Of course, Yahoo should also take advantage of the strong market of small and medium-sized businesses that need online visibility as well as the purchase of small websites to generate more traffic to Yahoo.

Analysis N°3

With regard to the threats facing Yahoo, we will focus in particular on the risks of manipulation of its interface or misuse of its services. In addition, Yahoo may become involved in disputes and other issues related to the privacy of its users.

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General presentation of Yahoo:

The Yahoo Company is an American company that has become a household name worldwide. In the beginning this company was an online directory but nowadays, Yahoo combines various Internet services including a web portal and extremely popular search engine, plus the instantaneous chat and hosting services.

We can observe the rapid development of this company in the fact that Yahoo is now one of the major general internet portals worldwide. Accessible in over 60 countries and 45 languages, all the services of this portal are accessible throughout the world and therefore reach billions of users.

The Yahoo Company’s turnover comes from the following major sectors: 

  • The major part of its income is from the sale of marketing services such as online advertising which represents 80.5% of the total income of the company.
  • Royalties from the ISPs then correspond to 19.5% of the total turnover of Yahoo.

It should be noted that Yahoo services are accessible internationally; however the major part of the company’s turnover is from the United States.


The major competitors of Yahoo:

The Yahoo Company is primarily a specialist in Internet search due to its search engine of the same name. It receives its revenue from payable advertising and also offers other services such as the messenger chat. However the competitors in this sector are numerous and certain have tried to purely and simply eradicate Yahoo from the Internet online search sector in certain countries. Here are the major stock market quoted companies that represent the competition for this search engine.

  • Google: This is undoubtedly the giant of this sector and represents over 80% of searches undertaken on the Internet worldwide.
  • Bing: This search engine owned by Microsoft is also a serious competitor of Yahoo as it is currently positioned in third place after Google and Baidu.
  • Baidu: This Chinese search engine succeeded in obtaining a significant proportion of the market through its position as search engine leader in China, a country where its rivals are strictly controlled.


The major partners of Yahoo:

Facing the growing strength of the giant Google, Yahoo tried to improve its position by creating various collaborations with other large companies exercising activities in the same sector or complementary sectors.

It therefore became associated with the Microsoft Company in 2010 with its Bing search engine. Later it planned a partnership related to the Internet search sector with the Facebook Group.

To conclude we should note a partnership signed in 2010 with the Nokia mobile telephone manufacturer for the provision of its search engine on devices available from this brand.  

With these partnerships, Yahoo remains a profitable and promising company for stock market investors.


The introduction and quotation of Yahoo shares:

In 1996, more precisely the 12th April of that year, Yahoo shares first became available on the stock exchange. In one single day the company managed to sell over 2.6 million shares at a price of 13 U.S. Dollars per share.

However these assets have continued to sell as the company has continued to show major profits, in 2005 the total share capital of Yahoo was valued at 43 billion U.S. Dollars.


The advantages and strong points of Yahoo shares as a stock market asset:

To have the best possible chances of taking profitable medium or long term positions you should of course be familiar with the Yahoo Company and its activities as well as knowledgeable about its major advantages and weaknesses. This will enable you to understand how this group will fare over the coming years. Here therefore to begin with is a detailed summary of this company’s strong points and advantages.

Firstly, the computer interface used by Yahoo offers certain advantages compared with those of Yahoo’s major competitors which enables it to hold its position among the market leaders. Its home page is notable for its simplicity which makes it easy to use, even for total beginners. The search engine is fast and pertinent as well as totally free for users. 

The Yahoo Group can also count on its significant work force with over 10,000 employees that work toward improving its available products, towards innovation and of course the marketing of its range of products already available.   

This company does not simply provide a search engine, it has shown itself able to develop a diverse array of products over time that are well integrated. In this way Yahoo has tried to respond to the majority of users requirements in order to encourage loyalty and avoid losing them to competitors. Among the web services that we found available with Yahoo are of course its search engine plus Yahoo mail, Yahoo news, the Yahoo FAQ, Yahoo Style, Yahoo sports, and Yahoo Finance plus Yahoo advertising and various websites and social networks.   

Of course, the image of the Yahoo brand is another of its advantages. The Yahoo brand is actually very popular throughout the world and well known by all generations due to its many years on the market. Because of its major popularity Yahoo can still account for over 350 million users worldwide. 

Finally, the stock market investors that are interested in this company’s shares will highly appreciate the ambitions of Yahoo. The latter has recently indicated that it aims to attract over a half billion users per month in over 30 different languages.


The disadvantages and weak points of the Yahoo shares as a stock market asset:

The Yahoo Group therefore possesses numerous strong points that are reassuring to investors regarding the probability of a rise in its asset price. However, the probable future rise in this asset is not as evident as it may initially appear as the Yahoo Group also has weak points that should be taken into account with your analyses. Here therefore are details concerning the major weaknesses of this company. 

Firstly it should be noted that the Yahoo Group has been subject to significant competition from major players in this market such as Google which remains the uncontested leader in this sector. This has obviously had a negative impact with major losses experienced in the advertising income of the Yahoo Group. In fact, despite its position as pioneer in the online search sector, Yahoo has lost a significant market share over time.

We also bemoan the lack of innovation of this group that appears content nowadays to simply follow and copy the market leaders without really trying to distinguish itself; this obviously does not attract consumers.

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Trade Yahoo shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.