Yahoo Market cap is 36.9B, Google Market cap is 163.56B, Why is Yahoo so worthless?

A couple of months ago I asked why Google was worth three times what Yahoo is worth. Now Google is worth 4.4 times what Yahoo is worth.

At the time it looked like Yahoo might be a better long term investment, but, Yahoo has gone down and Google has gone up.

In fact the one year trend is slightly down on Yahoo and the one year trend is up on Google.

Anyone have any reasons why Yahoo is worthless?

I am still watching for a good buy point, after a three month up trend and I have not been able to catch one.

Irreverent, not irrelevant. :-)

Linux is a good reason for success, IMO, ,but, it does not explain the difference.

Yahoo is older and does have a higher PE than Goggle, but neither are PE's that I really like being an old fashioned 10-20 guy myself.

The thing that bothers me is Market Cap, what the company is actually.worth. I see a lot of similarity between the two companies so even though the stock price is different I expect the companies to be worth about the same.

Yahoo opened in '96 at 1 and went up over a hundred. Far better gains than Google, even at the price it is now if you had held it you would have made more than buying and holding Google.

The long term trend for Yahoo is up, but, the short term trend is down.

I just cannot see why investors think Google is worth 4.4 times what Yahoo is worth.

There are great answers that I appreciate, and I have really considered all of these issues, except the Linux idea.

Maybe the name recognition is worth the 4.4 times difference.

Because Google is the in thing right now?

It's a "I'll google it." not "I'll yahoo it.:" No? He he..anyway you are hearing this from a person who knows nuts about investment.

:-) Report It

Time.

If you had purchased Yahoo years ago when it was still in growth like Google is now, you would have seen similar trends.

Comparing an older, well established company with a new one that is still growing is not a fair comparison.

I am not saying that Yahoo is a bad investment. I am just saying that it has limited growth potential. They need a product to set itself farther apart from Google before they see growth again.

sir google is linuxx based

Buy mid July.

the trend will turn and Google's price will push Y's up on a relative basis.

I actually think it's because Google has extended its market potential way beyond Yahoo's.

It might be that Google is shall we say over valued. I might be the only person in the world that might think so. Actually, I think Yahoo might also be overvalued.

Remember G comes before Y , have patience or use some other language !

Sorry I cannot help you today
K Ripley

its not that its worthless, it has just been poorely managed. they recently got a new ceo. they are not what we would call "cool" anymore either. whenever you want to search for something you say ill google it. they have made a name for themselves such as apple has done with the ipod. when you here kids talk about mp3 players they dont say mom i want a samsung mp3 player, instead its more like i want an ipod. they have established brand recognition and are the cool the to have/do. google has also been buying tons of companies recently. they are not very profitable right now, but in the long term they will be huge profit makers in my opinion. google also has a lower p/e, i think, havent looked at it in a while. that means its technically a cheaper company than yahoo.
there are more factors to it than that, but this gives you a general understanding

According http://stocksalad.com GOOG is overvalued by 13% (value 456), while YHOO is undervalued by 4% (value 28.45)

It's all about Marketing. Gogle went out and got the customers. They also went out and did a much better job enticing advertisers.... The prices of stock are greatly related to advertising dollars generated... Yahoo is just doing a poor job. Google is doing a good job.