Raghavendra Kuridoddi & Dennis Hoyle

• Industry: Internet services

• Competitors: Microsoft, AOL-Time Warner,

Social networking sites like Facebook, Twitter,
MySpace, Apple, Wireless companies
• Google Inc. (GOOG), and Yahoo! Inc. (YHOO)

• Invention and Innovation

• Interesting industry: Directly connected to

consumers, Brand
SWOT Analysis
SWOT Analysis
 Common Balance
Trends in Current Assets
100.0%
90.0%
80.0%
70.0%
60.0% Company 2009 2008 2007 2006 2005
50.0% Google 72.0% 63.5% 68.2% 70.6% 87.6%
Yahoo 30.8% 34.7% 26.5% 32.6% 31.8%
40.0%
30.0%
20.0%
10.0%
0.0%
2009 2008 2007 2006 2005

Google Yahoo
 Revenues
Revenues Since 2005
$25,000,000,000

$20,000,000,000

$15,000,000,000

$10,000,000,000

$5,000,000,000

$-
2009 2008 2007 2006 2005

Google Yahoo
 EPS
Earnings Per Share Since 2005
$25.00

$20.00

EPS 2009 2008 2007 2006 2005 E

Google $ 20.62 $ 13.46 $ 13.53 $ 10.21 $ 5.31 P $15.00
S
Yahoo $ 0.43 $ 0.31 $ 0.49 $ 0.54 $ 1.35
$10.00

$5.00

$-
2009 2008 2007 2006 2005

Google Yahoo
 Liquidity
Liquidity
14.00

12.00

10.00
Current Ratio 2009 2008 2007 2006 2005
8.00 Google 10.62 8.77 8.49 10.00 12.08
Current Yahoo 2.67 2.78 1.41 2.54 2.86
Ratio 6.00

4.00

2.00

0.00
2009 2008 2007 2006 2005

Google Yahoo
 Net Income
Net Income
$7,000,000,000

$6,000,000,000

$5,000,000,000

$4,000,000,000

$3,000,000,000

$2,000,000,000

$1,000,000,000

$-
2009 2008 2007 2006 2005

Google Yahoo

Net Income 2009 2008 2007 2006 2005

Google $ 6,520,448,000 $ 4,226,858,000 $ 4,203,720,000 $ 3,077,446,000 $ 1,465,397,000
Yahoo $ 597,992,000 $ 424,298,000 $ 660,000,000 $ 751,391,000 $ 1,896,230,000
 Profitability
Profit Margin 2009 2008 2007 2006 2005
Google 35.1% 30.4% 30.6% 33.5% 32.9%
Yahoo 8.9% 1.3% 12.2% 17.1% 48.4%

Profitability
60.0%

50.0%

40.0%

Profit 30.0%
Margin

20.0%

10.0%

0.0%
2009 2008 2007 2006 2005

Google Yahoo
 Invest in Google
• Earnings per share: Google more lucrative

• Profit margin: Consistent

• Positive cash flows

 Don’t invest in Yahoo
• 2008 performance

• Low proportion of current assets to total assets

• EPS: Very low

Citations