Yahoo board OKs $3 bln stock-buyback plan - Internet Services - Internet - Company Announcements

Yahoo board OKs $3 bln stock-buyback plan - Internet Services - Internet - Company Announcements

YAHOO!

Buying back $3 Billion of shares in a company with a market cap exceeding $40 Billion is not nirvana but it is not chopped liver either.

Advertising revenues will be the next key numbers to be reported. I read an article, I believe in Investors Business Daily, that speculated on when internet advertising will exceed magazine advertising. Approximately $150 million is spent on magazine advertising. Last years internet numbers were somewhere in the one half that range.

The problem for Google and Yahoo is that even if they each get one third of $150 million in revenues, these amounts are small relative to market caps approaching $50 Billion. Buying Google and Yahoo still takes faith. Faith in international growth in advertising revenues and faith that eventually internet advertising will approach current levels for TV advertising.

Articles such as the one mentioned can dampen ones spirits. Even the linked article is not exciting because the purchase of shares is spread out over 5 years and during this time employee options will account for a large portion of the shares.

I believe it will take the patience of Job to hold these shares long-term. I am thankful that folks such as my Mother have the kind of patience required. I hope you will buy a few shares and hang on for dear life. I write only for education and entertainment purposes. If you buy stocks after reading my reports, I hope you will be kind enough to let me know. I try to make a difference in the lives of others and it is nice to know if I have succeeded.