How to buy Yahoo! Shares (2024)? – invest in Yahoo!
Yahoo! Was once one of the largest internet companies in the world. Today, the company as we know it no longer exists. The search engine and other services were sold to Verizon Communications. In this article, you can read how to invest in Yahoo! stocks.
About Yahoo!
The American company Yahoo! Inc. became well-known for its search engine and portal site. Along with Outlook.com and Gmail, Yahoo! was one of the largest providers of free internet services.
Yahoo! sold its business activities to Verizon Communications in mid-2017. Verizon paid $4.8 billion for the acquisition of the company, which is a small amount compared to its peak value of $125 billion.
The company Altaba Inc.
Not everything from Yahoo! was sold. The company’s shareholdings in Alibaba and Yahoo! Japan remained within the company. On June 16, 2017, the name of the company was changed to Altaba Inc. The remaining pieces of Yahoo! continue to operate under that name.
Altaba has since been liquidated, and shareholders have achieved a small return. Altaba is no longer traded on the stock market.
You can still invest in Verizon Communications. Yahoo! is just a small part of this large telecommunications company. Do you want to know how to buy Verizon Communications shares? Then read our article on buying shares:
- Many users: With over a billion monthly users, the company’s services are still used by many people.
- Strong brand: Yahoo is a globally trusted brand and has built a strong position, especially in the United States.
- Diversification: Yahoo is active as a search engine, email provider, and news service.
- Verizon’s partnership: Yahoo is part of the Verizon Media Group, which can help with the company’s further growth.
- Innovation: Yahoo invests a lot of money in the development of artificial intelligence and machine learning.
The risks of investing in Yahoo! stocks
- Strong competition: Yahoo!’s market share has declined significantly due to competition from other providers such as Google and Microsoft.
- Dependence on advertisers: Yahoo! is heavily dependent on advertising revenues that can decrease during economically difficult times.
- Reputation: Due to data breaches, Yahoo! has suffered reputational damage in the past. Stricter regulations regarding data privacy and cybersecurity can increase the company’s costs.
- Dependence on one partner: The partnership with Verizon is critical to Yahoo!’s success.
What are Yahoo!’s competitors?
The start of Yahoo
The founders of Yahoo! are Jerry Yang and David Filo. They started the website “Jerry’s Guide To The World Wide Web” in 1994. It was the early years of the internet and search engines were still in their infancy.
It wasn’t easy to find interesting websites. Soon, Yahoo! became one of the most popular search engines, which led to a significant increase in advertising revenue.
Yahoo! acquires GeoCities
The first real acquisition of Yahoo! was the acquisition of web hoster GeoCities for 3.6 billion dollars. However, the acquisition was not successful because many users left the GeoCities platform after the acquisition. They disagreed with the new condition that photos and texts on GeoCities would become the property of Yahoo.
Yahoo! quickly dropped the condition, but it was too late. In addition, in an attempt to make GeoCities profitable, the company made some other controversial decisions. The free limits on accounts were lowered, and they started offering premium subscriptions.
Increasing competition
After 2000, Yahoo! faced increasing competition. There were all kinds of alternatives to the services offered by Yahoo! On the rapidly growing Myspace and later Facebook, photos could also be shared. Moreover, Facebook was able to combine different services.
Competition from Google
Google and Yahoo were founded around the same time, but Google became increasingly larger and more powerful. Yahoo couldn’t keep up with the competition.
In 2000, the company concluded that competing was pointless. In 2000, the company implemented Google’s technology into its search function, and Google received a significant amount of money for it. The deal with Google was reversed in 2004. In 2009, Yahoo switched to Bing, which allowed the company to use Microsoft technology for its search function.
Sad 5 billion dollar acquisition
Verizon acquired Yahoo in 2017 for 4.8 billion dollars. Forbes called it “the saddest 5 billion dollar acquisition in tech history.” In 2000, Yahoo was worth 125 billion dollars.
The company was overtaken by, among others, Apple, Amazon, Facebook, and Google. Microsoft also managed to hold its own.
In 2008, Microsoft tried to acquire Yahoo for 48 billion dollars, but the company rejected the offer at the time.
Should you buy Yahoo! stocks?
Due to the strong competition from Google and Microsoft, Yahoo! has significantly declined in value since its inception. It remains to be seen whether Yahoo! can ever recover its former glory.
Before buying Yahoo! shares, research the projects the company is currently working on. This way, you can determine whether an investment in Yahoo! is currently potentially interesting.
Auteur
Over Alex Mostert
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click here to read more about trading.info! Don’t hesitate to leave a comment under this article.
