Yahoo’s got an interview with Mike Arrington who provides some excellent and concise commentary on Yahoo’s demise, including at the end of the interview his prediction that the interviewer will be …. out of a job soon.
I think the *key* point Mike makes is that where Google gets about .09 per search on average, Yahoo gets about .04. He notes this is partly demographic and partly due to Yahoo’s search monetizing deficiencies that were supposed to be rescued by project “Panama” but were not. I think this is per search query rather than per click on a search ad, but the point is the same – Google makes more than twice as much per search action, and this is a crushing advantage to have over Yahoo.
So, what is the endgame for Yahoo in the Microsoft deal? We should know soon if the rumors of a News Corp deal are well founded or hyped up. Some are suggesting that it’ll be very hard to fend off Microsoft in any case as they are likely to bid $35 per share soon which will about equal the rumored News Corp deal of about a 50 billion valuation for Yahoo.
Disclosureizing: Long on Yahoo
Joe Duck 
Compared to GoogleCo, Yahoo stock is still somewhat affordable (as is MSN’s, surprisingly), tho’ we’d take a put on that, probably. Of course the big boys’s moves influence the stocks (and commodities, a bit more to my tastes: grain markets, man): I’ve been busy at work and haven’t looked at that charts recently, but I think MSN is profitting from all the hype (and will rake in more if they buy out Yang-hoo). Really, if Kid Obama starts to move, go short and contrarian on everything, except maybe Nike, etc.
Obviously MSN took a dump over last few weeks (an amazingly volatile chart over last few months), but is rebounding: probably some investor uneasiness when they announced bid for Yahoo. Yahoo’s taking off, but also a rather volatile chart (and IM not a tech-trader, but more fundamentalist, yet I wager that sharp climb will end in next few days). Tech stocks are for the thick-skinned (or the idle rich). Wheat or corn or the Bean: yes. A few little clicks (some quite cyclical), and ca-ching.
Really, if Kid Obama starts to move, go short and contrarian on everything
Ha – better get going then cuz he’s on a tear. I’ve wondered how a likely Democrat win will influence the markets. Both Republicans and Democrats continue to spend like reckless, drunken insane people.