Why Yahoo is worth less than nothing


marissamayerA reader pointed out to me today that Yahoo, minus its Alibaba and Yahoo Japan stakes plus cash, is now worth less than nothing according to Wall Street. This says a lot about Yahoo but even more about Wall Street, since the core company is still profitable if in decline. If I were a trader (I’m not) that would argue Yahoo is a buy since there’s likely to be a future point at which the company will be free of those other riches and even Wall Street will be forced to give the carcass a positive value.

But when I heard about the negative value story the first thing […]

Evil Google waiting on line one

telephoneLately I have been getting telephone calls from Google. Do you get them, too? The numbers they come from are in many different cities but the callers always ask to speak to the business owner (that’s me) so I can claim my business listing and my free web site from Google. But I don’t want a business listing and I don’t need a free web site, I explain. Please take my name off your list. Then they tell me the first of many lies: “We can’t take you off our list.”

Resistance is futile.

Actually the script varies a little and sometimes they say “we won’t take you off,” not “we can’t […]

Google’s OnHub router may save WiFi from itself

OnHubGoogle this week introduced its first WiFi router and my initial reaction was “Why?” WiFi access points and home routers tend to be low-margin commodity products that could only hurt financial results for the search giant. What made it worth the pain on Wall Street, then, for Google to introduce this gizmo? And then I realized it is Google’s best hope to save the Internet… and itself.

WiFi is everywhere and it generally sucks. WiFi has become the go-to method of networking homes and even businesses. I remember product introductions in New York back in the 80s and 90s when we were told over and over again that it cost $100 per […]

The KickStarter Paradox

Among the great business innovations of the Internet era are KickStarter and the many similar crowdfunding sites like IndieGoGo. You know how these work: someone wants to introduce a new gizmo or make a film but can only do so if you and I pay in advance with our only rewards being a possible discount on the gizmo or DVD. Oh, and a t-shirt. Never before was there a way to get people — sometimes thousands of people — to pay for stuff not only before it was built but often before the inventors even knew how to build it. From the Pebble smart watch to Veronica Mars, crowdfunding […]

AWS shows Cloud is NOT a high-margin business

AWSearningsLast week Amazon.com was the first of the large cloud service companies other than Rackspace to finally break out revenue and expenses for its cloud operation. The market was cheered by news that Amazon Web Services (AWS) last quarter made an operating profit of $265 million with an operating profit margin of 19.6 percent. AWS, which many thought was running at break-even or possibly at a loss, turns out to be for Amazon a $5 billion business generating a third of the company’s total profits. That’s good, right? Not if it establishes a benchmark for typical-to-good cloud service provider performance. In fact it suggests that some companies — IBM […]