Yahoo Stock Quotes

In 1998, Google cofounders Sergey Brin and Larry Page approached Yahoo! and suggested a merger. Yahoo! could have snapped up the company for a handful of stock, but instead they suggested that the young Googlers keep working on their little school project and come back when they had grown up. Within 5 years, Google had an estimated market capitalization of $20 billion. At the time of this writing, Forbes reported Google’s market capitalization at $268.45 billion.

If anything, diversify not across stocks but across the smart people you follow. That is real diversification instead of “Yahoo Finance diversification.

Bizarre and Surprising Insights—Consumer Behavior Insight Organization Suggested Explanation7 Guys literally drool over sports cars. Male college student subjects produce measurably more saliva when presented with images of sports cars or money. Northwestern University Kellogg School of Management Consumer impulses are physiological cousins of hunger. If you buy diapers, you are more likely to also buy beer. A pharmacy chain found this across 90 days of evening shopping across dozens of outlets (urban myth to some, but based on reported results). Osco Drug Daddy needs a beer. Dolls and candy bars. Sixty percent of customers who buy a Barbie doll buy one of three types of candy bars. Walmart Kids come along for errands. Pop-Tarts before a hurricane. Prehurricane, Strawberry Pop-Tart sales increased about sevenfold. Walmart In preparation before an act of nature, people stock up on comfort or nonperishable foods. Staplers reveal hires. The purchase of a stapler often accompanies the purchase of paper, waste baskets, scissors, paper clips, folders, and so on. A large retailer Stapler purchases are often a part of a complete office kit for a new employee. Higher crime, more Uber rides. In San Francisco, the areas with the most prostitution, alcohol, theft, and burglary are most positively correlated with Uber trips. Uber “We hypothesized that crime should be a proxy for nonresidential population.…Uber riders are not causing more crime. Right, guys?” Mac users book more expensive hotels. Orbitz users on an Apple Mac spend up to 30 percent more than Windows users when booking a hotel reservation. Orbitz applies this insight, altering displayed options according to your operating system. Orbitz Macs are often more expensive than Windows computers, so Mac users may on average have greater financial resources. Your inclination to buy varies by time of day. For retail websites, the peak is 8:00 PM; for dating, late at night; for finance, around 1:00 PM; for travel, just after 10:00 AM. This is not the amount of website traffic, but the propensity to buy of those who are already on the website. Survey of websites The impetus to complete certain kinds of transactions is higher during certain times of day. Your e-mail address reveals your level of commitment. Customers who register for a free account with an Earthlink.com e-mail address are almost five times more likely to convert to a paid, premium-level membership than those with a Hotmail.com e-mail address. An online dating website Disclosing permanent or primary e-mail accounts reveals a longer-term intention. Banner ads affect you more than you think. Although you may feel you've learned to ignore them, people who see a merchant's banner ad are 61 percent more likely to subsequently perform a related search, and this drives a 249 percent increase in clicks on the merchant's paid textual ads in the search results. Yahoo! Advertising exerts a subconscious effect. Companies win by not prompting customers to think. Contacting actively engaged customers can backfire—direct mailing financial service customers who have already opened several accounts decreases the chances they will open more accounts (more details in Chapter 7).

In the previous four quarters, Yahoo! had racked up $433 million in revenues and $34.9 million in net income. So Yahoo!’s stock was now priced at 263 times revenues and 3,264 times earnings. (Remember that a P/E ratio much above 25 made Graham grimace!)5

Perhaps the most incredible deal of the time was Excite@Home’s acquisition of Blue Mountain Arts for $740 million dollars in cash and stock. Excite@Home was a company formed when the broadband ISP @Home merged with the search portal Excite.com. Blue Mountain Arts operated the website Bluemountain.com, where users could send each other electronic greeting cards by email. That’s right. Bluemountain did nothing but send Grandma electronic “get-well-soon” greetings. But Bluemountain.com was getting 9 million unique users a month to do this, and at the time, traffic was the sine qua non for a Yahoo-chasing portal player like the Excite half of Excite@Home.50 As the New York Times noted in its article announcing the deal, Excite@Home “predicted that the acquisition would increase its audience by 40%, to encompass approximately 34% of Internet traffic.”51 So, Excite@Home was willing to pay $82 per user to attract additional eyeballs to its network of properties and try to keep pace in the portal race.

Price to Sales (P/S). Just as it sounds, calculate this by dividing the price a company's shares sell for versus its revenue per share. There are two ways to calculate this ratio. Financial sites such as Yahoo! Finance will give you a company's market capitalization. "Market cap" for short, this is the price per share of the company multiplied by its total number of shares outstanding and is a measure of how much the total company is worth. You can divide the market capitalization by the annual revenue for the company, which you can find on the income statement. You can also calculate the sales per share first by dividing the total revenue by the number of shares outstanding, and then divide this by the stock price. P/S ratios can be useful for companies that currently have negative earnings. Care should be taken not to inappropriately compare ratios across industries, however, as the P/S ratio will depend on the nature of the business. A retailer like Wal-Mart that has extremely low profit margins will have a much smaller P/S ratio than a manufacturer like Apple.