Wednesday, July 20, 2005
Yahoo! May See Near-Term Impact From Google Q2 - Forbes.com
Yahoo! May See Near-Term Impact From Google Q2 - Forbes.com
Yahoo! May See Near-Term Impact From Google Q2
07.20.05, 9:59 AM ET
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Citing intact fundamentals, Banc of America Securities maintained a "buy" rating and $43 price target on Yahoo! after the company's second-quarter earnings release.
"Yahoo!'s (nasdaq: YHOO - news - people ) results were largely in-line with expectations, with revenues at the mid-point of guidance. However, given expectations in the stock, even 41% organic growth apparently disappointed the market," said the research firm.
According to Banc of America, the revenue-per-search metric was higher in the second quarter than the first. "While pricing trends in the second quarter were generally unchanged from prior quarters, revenue-per-search rose in the mid to high single digits."
The research firm said that Yahoo!’s market share of searches has been near 30%, "making it a solid No. 2 in the query market." Google (nasdaq: GOOG - news - people ) is the industry leader, with an approximate 37% share. With 15% to 16% market share, Microsoft (nasdaq: MSFT - news - people )'s MSN is third, according to qSearch.
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