dollar market capitalization? Why or why not?Yahoo! is worth in present market capitalization. Its unique combination of offering its services for free and building its product with ease-of-use as the primary goal, it has left its initial competitors in the rear view mirror. Yahoo! is now considered a chief competitor of AOL and Microsofts MSN. Additionally, its 1997 P/E ratio of 171 was an indicator of strong future earnings. The following financial data confirms this:For the first half of the year 2000, revenues totaled $498.5 million, up from232.4 million in 1999. Net income totaled $143.3 million, up from $1.5 million. Results reflect an increased number of advertisers purchasing space on the companys media properties, increasing number of event broadcasted, and increased investment income (http://biz.yahoo.com/p/y/yhoo.html)c.What key business developments is driving Yahoo!s stock price?Yahoo! has continued to enlist more and more advertisers that are driving its value consistently upwards. From Amazon.com to Eloan, Yahoo! has shown consistent earnings growth through not only increased advertisement, but also creative promotions that provide additional revenue when Yahoo! users make purchases or even provide marketing information to advertisers. Yahoo! has continued to add to its online services and is beginning to be viewed as a key part of the computing establishment. Now Compaq is attempting to have Yahoo! news and weather on all its PCs. This will only strengthen Yahoo!s position. 4. The future of Yahoo!a.Why have AOL and MSN become Yahoo!s new Internet competition?AOL and MSN are the only other comprehensive branded networks available to consumers. Yahoo!s previous competitors cannot make this claim. Yahoo! has diversified its product to the point it can now compete head to head with the big boys.b.Do you think Yahoo! will succeed in this new competitive arena? Why or why not?Yahoo! has a tremendous opportun...
