Yahoo stock, and the internet search engine roadmap

From the Joe Duck blog:

I’ve been waiting for a “sign” to buy Yahoo (well, some SHARES of Yahoo ) which seems due for a huge surge when their publisher network revenues kick in later this year. Yahoo has more traffic than Google but you sure wouldn’t know it from the buzz, even among industry insiders. Capitalization lags Google big time for what appear to be no really good reasons.

My sign that Yahoo will do very well came last week as I signed up and used Flickr, which ranks among the most intuitive and brilliant applications I’ve ever used.

Read more here…

I think Joe’s insight is on track, but I think that Google has also been their own worst enemy with some of the corporate decisions they have made.

Google has been criticized for installing “cookies”; for offering a reverse-lookup phone directory that can be used to find a person’s address; for filtering out too much or too little pornographic content with its “SafeSearch” feature; for hurting small companies by ranking search results according to popularity and for altering the calculations of rankings; for scanning and digitally indexing copyrighted library books without asking the permission of copyright holders; the initial public offering had such a complicated auction system that only big investors had the wherewithal to figure it out.

But censoring its own services for consumption in China may be Google’s greatest Achillies Heel. Even though Yahoo, Microsoft, etc. have all done China deals, Google is the company with the “Don’t be Evil” mantra. So they end up looking like the biggest hypocrites.

Microsoft also has Google in its sights and Google could take a major hit if MS Live is any kind of success. Don’t be too quick to discount MS’s impact. Although investors have been pretty negative regarding the MS internet product roadmap.

Flickr, MySpace, even AdultFriendFinder are all examples of community based portals that are very successful. Yahoo is a survivor and the Flickr portal is a good example of why it stays successful. Yahoo continues to not only survive, but grow and meet investor expectations by keeping the Yahoo collective ear to the internet rail.

Meanwhile “clustering” search technology is poised to change “internet search”, as we know it now, in a profound way. Though “Clustering” has been around for a couple of years, I am finally seeing “cluster” search products in the document management and legal verticals.

Check out clusty.com for an example of clustered search results.

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2 comments

  1. Good points all. I attended MIX06, Microsoft’s developer conference, and the LIVE stuff was VERY impressive – a contrast with many other MS developments. Also agree that Google has squadered some of it’s “cool kid on the block” capital with recent actions.

    As ads move online with the clout of 0.5 Trillion dollars per year we are going to see all kinds of unpredictable online development.

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