Wednesday, October 19, 2005
AP Wire | 10/19/2005 | Yahoo's profits continue to accelerate in race against Google:
"SAN FRANCISCO - Yahoo Inc.'s profits keep accelerating, but the Internet icon still can't seem to grow fast enough to keep pace with online search engine leader Google Inc.
The Sunnyvale, Calif.-based company delivered another quarter of stellar results Tuesday, reporting net income and revenue that exceeded analyst expectations for the three months ended in September.
'The whole business is going gangbusters,' Dan Rosensweig, the company's chief operating officer, said Tuesday in an interview.
Now Yahoo can only hope it's not upstaged Thursday when Google - probably its biggest rival - is scheduled to detail its third-quarter performance.
Since Google went public 14 months ago, its financial growth has consistently outstripped Yahoo's - a pattern that has been reflected in the stocks of the two companies.
While Yahoo's market value has declined by about 10 percent so far this year, Google's has climbed 56 percent.
'Investors have been leaving Yahoo and moving to Google,' said Piper Jaffray analyst Safa Rashtchy. He predicted that trend will end if Yahoo continues to perform as it did in the third quarter.
Yahoo earned $253.8 million, or 17 cents per share, for the period. That was essentially unchanged from net income of $253.3 million, or 17 cents per share, at the same time last year when Yahoo realized a $129 million windfall by selling part of its stake in Google.
Yahoo has since sold all its holdings in Google and used the proceeds to invest in other ventures, such as Chinese e-commerce firm Alibaba.com. The company also is competing against Google to buy a minority stake in Time Warner Inc.'s AOL.
Revenue for Yahoo's latest quarter totaled $1.33 billion, a 47 percent increase from $906.7 million last year..."
"SAN FRANCISCO - Yahoo Inc.'s profits keep accelerating, but the Internet icon still can't seem to grow fast enough to keep pace with online search engine leader Google Inc.
The Sunnyvale, Calif.-based company delivered another quarter of stellar results Tuesday, reporting net income and revenue that exceeded analyst expectations for the three months ended in September.
'The whole business is going gangbusters,' Dan Rosensweig, the company's chief operating officer, said Tuesday in an interview.
Now Yahoo can only hope it's not upstaged Thursday when Google - probably its biggest rival - is scheduled to detail its third-quarter performance.
Since Google went public 14 months ago, its financial growth has consistently outstripped Yahoo's - a pattern that has been reflected in the stocks of the two companies.
While Yahoo's market value has declined by about 10 percent so far this year, Google's has climbed 56 percent.
'Investors have been leaving Yahoo and moving to Google,' said Piper Jaffray analyst Safa Rashtchy. He predicted that trend will end if Yahoo continues to perform as it did in the third quarter.
Yahoo earned $253.8 million, or 17 cents per share, for the period. That was essentially unchanged from net income of $253.3 million, or 17 cents per share, at the same time last year when Yahoo realized a $129 million windfall by selling part of its stake in Google.
Yahoo has since sold all its holdings in Google and used the proceeds to invest in other ventures, such as Chinese e-commerce firm Alibaba.com. The company also is competing against Google to buy a minority stake in Time Warner Inc.'s AOL.
Revenue for Yahoo's latest quarter totaled $1.33 billion, a 47 percent increase from $906.7 million last year..."
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