Google dominates while Yahoo struggles to lift income
Yahoo! Inc plans to boost sales by offering services for phones and social-networking sites. The analysts predict the owner of the most visited U.S. Web site to report an eighth straight quarter of declining profit. Compared with $5.57 for Google Inc. the world’s largest Internet search engine, the Sunnyvale, California-based company is generating 49 cents a share of non-budgeted cash. The investments of Yahoo in online advertising have failed to stem market share losses to Google. Jeffrey Lindsay, an analyst at Sanford C. Bernstein & Co. in New York says that yahoo spends very limited on acquisitions and technology while Google has moved on into mobile-phone advertising, social networking and Web video. Google continues to invest in search and ads. In past years Yahoo is struggling relative to Google because of a failure to invest in cutting-edge technologies. Yahoo also faces challenges to win sales from social-networking sites Facebook Inc. and News Corp.’s MySpace. It also made achievement to build its display business by paying $680 million to buy the remaining stake in Right Media Inc. and $300 million for BlueLithium Inc, Google on the other hand has hunted for bigger deals. Mountain View, California-based Google paid $1.65 billion for video site YouTube Inc and is buying the online advertising firm DoubleClick Inc. for $3.1 billion. Google having such a size advantage and good business going is putting much more stress on Yahoo.
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