Yahoo (YHOO), which competes with Google (GOOG) and AOL (AOL) in the search business, is seeing a relatively stable profit margin of 42% since 2008 by our estimates, and we expect the margin to rise slightly over the coming years as Yahoo benefits from its partnership with Microsoft (MSFT). In 2009, Yahoo and Microsoft signed a deal whereby Yahoo will not only use Microsoft's search technology on its websites but will also keep a majority of the ad revenues. Yahoo is also making efforts to control costs by cutting its workforce, which should improve profitability in the short term.

Continue reading Yahoo's Search Profit Margin to Expand, Offering Additional Upside to Stock

Yahoo's Search Profit Margin to Expand, Offering Additional Upside to Stock originally appeared on BloggingStocks on Thu, 03 Mar 2011 09:40:00 EST. Please see our terms for use of feeds.

Baidu (BIDU), China's search engine giant, has seen its American depositary shares (ADSs) rise very nicely over the last 12 months. Yesterday, the ADSs closed up almost 2% to $108.63, not too far from the 52-week high of $115.04; the price movement was achieved on high volume. The 52-week low is $40.67, so those who bought in near the latter price are pretty happy campers.

That 2% rise, while quite respectable, wasn't the big story; rather, it was what happened during the after-hours session. The ADSs went up 7.7% to $116.99. Considering that we're in another earnings season, I don't think it's a particular challenge for anyone to guess what propelled the company to such lofty heights.

Continue reading Baidu Q4 Earnings: Time to Buy or Sell?

Baidu Q4 Earnings: Time to Buy or Sell? originally appeared on BloggingStocks on Tue, 01 Feb 2011 09:00:00 EST. Please see our terms for use of feeds.

Google (GOOG) gave investors some Q4 numbers to digest after the bell on Thursday, but that news may have been overshadowed by a surprise change in management. As I'm sure everyone has heard by now, Larry Page will be taking over CEO duties from Eric Schmidt.

But let's have a look at the numbers anyway. On a reported basis, the search-engine business made $7.81 a share, good for a 27% year-over-year growth rate. On an adjusted basis, per-share profit came out to $8.75, comfortably ahead of the $8.06 projected by Wall Street. The top line also put in a strong showing.

Continue reading Google Earnings: Is It a Buy or Sell Following Quarterly Report?

Google Earnings: Is It a Buy or Sell Following Quarterly Report? originally appeared on BloggingStocks on Fri, 21 Jan 2011 10:00:00 EST. Please see our terms for use of feeds.

Google (GOOG) found itself in the news spotlight Tuesday morning. First, the company announced that it is going to make a substantial offer to purchase coupon site Groupon. The other news is that the company now faces a formal investigation from European Union antitrust regulators following complaints from several search providers that Google has abused its "dominant position."

The EU stated, "The Commission will investigate whether Google has abused a dominant market position in online search by allegedly lowering the ranking of unpaid search results of competing services." Back in February, Google reported that a British site (Foundem) and a French legal search engine (ejustice.fr) both accused the company of demoting their sites in Web search results through its search algorithm. The two sites state that this took place because they are rivals.

Continue reading Google Faces European Anti-Trust Probe

Google Faces European Anti-Trust Probe originally appeared on BloggingStocks on Tue, 30 Nov 2010 12:30:00 EST. Please see our terms for use of feeds.

I'm sure there are some out there who want to take me to task for my thoughts on Google, Inc.'s (GOOG) trade potential before the search giant released its third-quarter report after the bell today. I thought there was too much risk to the situation, but it looks as if the market decided to embarrass me.

At the time of this writing, the shares were up 9% to roughly $590 in the extended-hours session. The company had closed the regular session down slightly to just under $541. According to the Associated Press, net income beat expectations by a comfortable margin.

Continue reading Google Up in After-Hours Session

Google Up in After-Hours Session originally appeared on BloggingStocks on Thu, 14 Oct 2010 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Google Second-Quarter Earnings Preview

Google Second-Quarter Earnings Preview originally appeared on BloggingStocks on Thu, 15 Jul 2010 09:00:00 EST. Please see our terms for use of feeds.

News is surfacing that Google (GOOG) will purchase ITA Software. ITA is a technology company that owns specialized software that enables customers to find "sophisticated flight information." The acquisition will allow Google users to comparison shop for airline tickets.

Before we get all excited about how much money this is going to add to Google's bottom line, remember that it will not be earning money on tickets sold as the company is not entering the travel business. That said, this acquisition and the airline search service could drive more traffic to Google (if that is even possible), which leads to more page views, which leads to more money.

Continue reading Google to Purchase ITA Software

Google to Purchase ITA Software originally appeared on BloggingStocks on Fri, 02 Jul 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Google Trading Lower Despite Better Than Expected Earnings

Google Trading Lower Despite Better Than Expected Earnings originally appeared on BloggingStocks on Thu, 15 Apr 2010 18:30:00 EST. Please see our terms for use of feeds.

Continue reading Yahoo! Trades Higher Following Earnings Report

Yahoo! Trades Higher Following Earnings Report originally appeared on BloggingStocks on Tue, 26 Jan 2010 18:00:00 EST. Please see our terms for use of feeds.

A big player in the tech sector is ready to report today. Google (GOOG) will publish Q4 results later this afternoon. Traders and investors alike get super excited when the search behemoth tells the world how it's doing.

I think the company will show that it's doing quite well. According to Earnings.com, expectations peg the per-share profit at $6.43. If that number is hit, then the growth rate will be a solid 26% (last year at this time, Google made $5.10 per share). Of course, most people aren't interested in hitting the projected stat, they want management to rise above it and demonstrate true earnings power.

Continue reading Google's Q4 Is Here: What Should We Expect?

Google's Q4 Is Here: What Should We Expect? originally appeared on BloggingStocks on Thu, 21 Jan 2010 10:00:00 EST. Please see our terms for use of feeds.

Have you ever gone to a website and kicked the tires? Well, uTest, a Boston-based startup, pulled 600 software professionals together from 20 countries to do exactly that.

The company, which has a bench of 21,000 professional testers from 159 countries, wanted to see which of the three major retail websites -- those run by Amazon.com (AMZN), Walmart (WMT) and Target (TGT) -- is the least buggy. The winner: Amazon.

Continue reading Study: Target website buggy, Amazon takes top honors

Study: Target website buggy, Amazon takes top honors originally appeared on BloggingStocks on Sat, 05 Dec 2009 11:40:00 EST. Please see our terms for use of feeds.

It's now official: Microsoft (MSFT) and Yahoo! (YHOO) are in cahoots to take on search engine giant Google (GOOG). The new search partnership inked by the two companies still needs to secure regulatory approval, but the talks that began in late July are merely a step away from reality now.

Microsoft and Yahoo! expect to pass this final step early next year. If this happens, the muscle behind Yahoo! search will be Microsoft's Bing search engine.

Continue reading Microsoft and Yahoo! sign on the dotted line

Microsoft and Yahoo! sign on the dotted line originally appeared on BloggingStocks on Sat, 05 Dec 2009 09:40:00 EST. Please see our terms for use of feeds.

The newspaper industry continues to blame Google (GOOG) for its woes, and Google continues to claim its innocence. The search engine giant's CEO, Eric Schmidt, says that his company could actually help the newspaper industry survive the shift from print to digital ... a shift that's been more than a decade in the making, he was kind enough not to note.

According to Schmidt, publishers need to dig into the online environment and find new ways to generate revenue. "With dwindling revenue and diminished resources," he wrote in an op-ed piece published in News Corp's (NWS) Wall Street Journal, "frustrated newspaper executives are looking for someone to blame."

Continue reading Google to media: Your problems aren't our fault

Google to media: Your problems aren't our fault originally appeared on BloggingStocks on Fri, 04 Dec 2009 11:30:00 EST. Please see our terms for use of feeds.

Google (GOOG) just picked up another promising startup in its effort to gain some ground in the online visual advertising market. Teracent, which was formed three years ago, is becoming part of the search engine giant.

Yahoo! (YHOO) currently leads the market in display advertising sales, and Google has been trying push into the space. Last year, this led to its acquisition of online ad service DoubleClick, but that was a first step rather than a total solution to Google's display ad ambitions.

Continue reading Teracent: Display ad biz joins the Google family

Teracent: Display ad biz joins the Google family originally appeared on BloggingStocks on Tue, 24 Nov 2009 12:20:00 EST. Please see our terms for use of feeds.

Yahoo! (YHOO) is the latest company that wants to optimize its search results for Twitter. This follows moves by Microsoft (MSFT) and Google (GOOG) to integrate Twitter data into their search results. Unlike its competitors, however, Yahoo! wants to do this without spending a dime (well, without giving a dime to the hot new social media platform).

Twitter's microblogging service has become famous not only for its rapid growth but also because it's found no way to turn it into revenue. Its recent discussions with Microsoft and Google demonstrated that Twitter can indeed bring in some cash -- by licensing its data for use in fine-tuning search engines. With two of the top search engines now optimizing for Twitter, it was only a matter of time before Yahoo! would rush to join the party.

Continue reading Yahoo! wants in on Twitter: No money involved

Yahoo! wants in on Twitter: No money involved originally appeared on BloggingStocks on Fri, 20 Nov 2009 12:40:00 EST. Please see our terms for use of feeds.

Unless you already have a major foothold in the search engine market - or an amazing, disruptive technology that can make the world take notice - there isn't much point in staying. Competing with Google (NASDAQ: GOOG) is hard enough, even when you're Yahoo (NASDAQ: YHOO) or Microsoft (NASDAQ: MSFT) ... and, apparently, when you're IAC/InterActive Corp (NASDAQ: IACI). Barry Diller is ready to give up Jeeves, but only if asked nicely.

Diller's presence in the search space is Ask.com, ranked #4 behind Google, Yahoo and Microsoft's Bing. With a substantial gap between first and second, fourth barely registers at all. Ask.com has only a 2% U.S. market share, according to Hitwise, more than 60 percentage points behind the industry leader.

Continue reading Would anybody buy Jeeves? Ask might go on block

Would anybody buy Jeeves? Ask might go on block originally appeared on BloggingStocks on Wed, 28 Oct 2009 15:30:00 EST. Please see our terms for use of feeds.

Sergey Brin claims that Google (NASDAQ: GOOG) didn't try to buy Twitter. The co-founder of the search engine giant made a surprise appearance at Web 2.0 Thursday, where organizer John Battelle asked point blank if he'd made a move for the popular microblogging website.

Of course, Brin revealed his fluency in corporate speak, continuing, "But if companies approach us we definitely consider any opportunities to buy," according to Reuters. A denial doesn't always mean a denial, especially if there were agreements to keep negotiations confidential.

Continue reading Did Google try to buy Twitter?

Did Google try to buy Twitter? originally appeared on BloggingStocks on Sun, 25 Oct 2009 11:20:00 EST. Please see our terms for use of feeds.

It's tough to take on Google (NASDAQ: GOOG). The search engine behemoth owns 65% of the U.S. search market and has a commanding brand presence. Yet, the software maker up the coast isn't known to give up easily. Microsoft (NASDAQ: MSFT) has cut a deal with microblogging site Twitter that should give it an edge in the battle to harness data and make it easier to find. A new deal will feed all those tweets into Bing, the Microsoft search engine.

Twitter is giving Microsoft full access to its data, in a deal announced Wednesday. Bing will provide search functionality for Twitter that you won't find in Google, which seems to have been outbid for the rights to the "tweet-stream." Under the deal, Bing will be able to index and display the tweets almost immediately as they are posted.

Continue reading Microsoft now in bed with Twitter

Microsoft now in bed with Twitter originally appeared on BloggingStocks on Thu, 22 Oct 2009 09:00:00 EST. Please see our terms for use of feeds.

The number two search engine in the United States turned in a fantastic third quarter, far ahead of expectations. Cost-cutting, layoffs and business divestitures led to a surge in Yahoo's (NASDAQ: YHOO) profits and a 4.8% increase in share price in extended trading on Tuesday evening. Net income more than tripled to $186.1 million (13 cents per share) from the third quarter of 2008's result of $54.3 million (4 cents a share). Sales (exclusive of fees passed to partner sites) reached $1.13 billion, slightly above the $1.12 billion expected by analysts, according to a Bloomberg survey.

With the advertising market in rough shape and competition from Google (NASDAQ: GOOG) continually rising, Yahoo refocused on its core properties: the home page, messaging and mobile services. The company trimmed what it didn't need, which is why it was able to boost its earnings even with a decline in revenue. Increased ad revenue from auto manufacturers, travel companies and consumer product manufacturers also helped.

Yahoo's chief financial officer, Timothy Morse, says that the company's markets are "starting to stabilize." Of course, Yahoo itself must be doing something right: its share price is up 41% this year.

Continue reading Yahoo profit triples year-over-year

Yahoo profit triples year-over-year originally appeared on BloggingStocks on Wed, 21 Oct 2009 08:30:00 EST. Please see our terms for use of feeds.

Modest goals don't seem to be on the agenda for Facebook. Sheryl Sandberg, the company's chief operating officer, is shooting for Google (NASDAQ: GOOG). The social networking company seeks its ad market as rivaling (or even surpassing) Google's search ad market in size. Facebook says it's on target to bring in $500 million in revenue this year (Sandberg didn't confirm it, though).

With its 300 million users, Sandberg has been trying to convince the world that her company has a solid business model in place. The perception that eyeballs don't necessarily equal dollars, born of the internet boom a decade ago, isn't necessarily true any more, as demonstrated by Google's ability to monetize search (and hit record profits) has demonstrated. For the third quarter of 2009, the search engine giant raked in net revenue of $4.38 billion.

Continue reading Facebook shoots for search victory

Facebook shoots for search victory originally appeared on BloggingStocks on Fri, 16 Oct 2009 12:20:00 EST. Please see our terms for use of feeds.