Yahoo :: Free Essay Writer

yokelThe hayseed stock has taken a huge drop and has taken the rest of the stock market with it. The graduation exercise quarter sales are set to be 40% off last years estimates. The stock is down 92 % from its peak, which was set on Dec 30, 1999. The yokel stock has been in a steady downf each since its peak.There were also other drops in technology stocks. Cisco and Intel predicted big revenue enhancement drops and job cuts. This set gave the NASDAQ a 5.3% fall. The index is off 59% from its peak, which was reached last year. Since Yahoos birth in 1995, the company has not had to deal with anything cultivation to the dilemma it is facing nowadays. They know have to deal with problem without their CEO Tim Koogle, who recently stepped aside. It was not too long ago that there were rumors of Yahoo purchase Disney. Now Yahoo would be lucky if Disney buys them. Yahoo was once worth $134 billion, is now valued at less than $10 billion. Yahoo gets almost all of its cash from on line advertising. This has proven to be a good way to get cash in the past five years. At first all of Yahoos 160 million visitors were interested in these advertisements. But these advertisements seem to have lost their luster. Few people are clicking on those flashy top-of-the knave banners. It seems that only .01% of visitors click on the advertisements now, compared to .06% of visitors a couple of years ago. This is interesting statistic compared to the fact that even junk mail gets a 1%-to-2% response rate.The Yahoo Company is almost completely dependent on the ads. Unlike AOL, who are a service provider as well as a gist provider. AOL collects $21.95 per person a month, whereas people using Yahoo get their Internet access elsewhere and are used to paying nothing for content. When the CEO of Yahoo tried to extract even a small fee from users of Yahoos auction service, 90% of the users stopped using the service.Yahoo will now need to find a new CEO, will Yahoo currently fen ding off potential takeovers with a two-year $500 million stock salvation plan. This leaves the company with $ 1.5 billion in the bank, giving it time to figure out how to make more money on its own. Although it might unstated for Yahoo to stay strong when AOL and Microsoft are becoming so dominant.