Yahoo (NASDAQ: YHOO) Set To Blast Off?

August 13th, 2007

We’ve all heard the saying, “content is king”. I think it safe to say Yahoo and Google are both Kings of the online world. With the latest sell offs in the investing market, I think now is a prime opportunity to think about buying shares in this online giant.

Here are some of the reasons I LOVE Yahoo!:

• It is a dominant player online, and the online world is still growing by leaps and bounds.
• YHOO is so cheap you can buy it for the same price you could about a year ago!
• There have been some delays in launching critical programs that will grow the company, and this has created a bad taste in investor’s mouth… cheaper shares for us. The program will be released and it WILL increase Yahoo’s earnings… by how much we don’t know. Taking their publisher program out of beta and allowing international publishers to display Yahoo! ads will foster some extreme growth and new popularity among webmasters. Webmasters just want to make as much money as possible and Yahoo’s beta program for US publishers is very profitable (it makes the webmasters more money than Google’s Adsense program often does).
• Video advertising online has yet to become extremely popular, but you can bet that it will help increase online advertising revenue.
• Yahoo is still innovating; look at Yahoo! Answers and how wildly popular it has become!
• Yahoo has a new CEO… the pressure is on and things should now move forward.
• Yahoo can acquire other popular online entities and monetize them (Facebook? Large Forums? etc).
• Yahoo could be acquired by a traditional publishing company that wishes to get online or by another online company (Microsoft?).

So to sum it up, Yahoo has a lot of potential to grow and begin REALLY competing with Google for some ad dollars. Yahoo can grow organically or acquire other online properties and Yahoo might also be a target for acquisition by traditional media companies. There are many avenues for Yahoo to grow!

Currently the share price is $24.55 and the price for some Jan 2010 $20 Call Options is $8.00. I’ll be sure to update you on the price in the future! It should be interesting to watch.

Entry Filed under: Technology, Investing