I a big fan of YHOO, but not at these prices. Im a fan in the sense that I see an eventual buyout of the firm, but not before a STEEP discount to its stock. YHOO's glory years are well behind it and changing its CEO very few years can't do anything to stop the bleeding. Why? Because once a user stops using a product, they never come back. YHOO was once the go-to hot spot for everything, but since then, its lost millions of users. I've not no positions in YHOO at the moments but I'm waiting for indication of a top, then I'm shorting this bad boy back down to the mid teens.
Listen , we've heard your type of story over and over . Should you not like your investment in Yahoo --then get out --sell it . We are not interested in your assumptions or feelings . We prefer not to hear about "glory years , bleeding. or anything about lost users . Spare us your agony and get out . If you have no position now in Yahoo , then rid us of your hideous bull .
"Because once a user stops using a product, they never come back."
So explain to me all the hype around the new Flickr app they just relaunched. You're saying people aren't coming back? Or explain why Yahoo Sports just passed ESPN in visitor traffic again. Because nobody comes back?
Explain the whole resurgence of Apple. Because nobody comes back?
Yahoo is the tihrd most trafficked site behind Facebook and Google. I guess, because nobody comes to this "old" site anymore...right?
Flickr: Flickr's popularity was never as pervasive as YHOO. I.E. if you turn away only a small population, there's plenty more user to replace them.
Apple: Apple's product NEVER penetrated the consumer retail. Apple sold more than 85% of its product (prior to the introduction of first generation iPods and the return of Steve Jobs) to institutions (schools, government offices, etc). When they failed the first time, they turned away mainly SCHOOLS. They never turned away any retail customers. Moreover, most schools still aren't allowed to purchase anything but Apple products for their protection against viruses. In full discloser, I profited generously in the rise of APPL for the reason I just outlined. Albeit, I sold a bit early ($620s).
Viewership at YHOO is declining and revenues have been relatively flat the last two years. Selling assets will only last so long. Moreover, if I read their balance sheet correctly they don't have another Alibaba to sell.
Um....well that might be true if my roommate doesn't work at YHOO, gets paid $120k as a programmer, comes home complaining that he doesn't do much for a quarter of the workday, and wants me to get him a job at my trading firm. Any responses to that? Oh, he's been there for 3 years. In all honesty, I've been waiting for people to wake up and see the value trap in YHOO. Thank god, I'm a good enough trader to not have shorted the short during this euphoria (since you can never tell how many poor investors are out there), but it's getting to the point where I've been waiting for a bit too long and I'm anxious for people to smell the coffee.