Yahoo! Inc. (YHOO)’s Google Inc (GOOG) Move Makes Sense

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For the full year, paid clicks and price per click rates increased by 11% and 1% respectively. The results also include the sale of Yahoo’s stake in China’s e-commerce giant Alibaba. As a result, the company has $3.5 billion more in cash and cash equivalents at the end of 2012 as compared to the end of 2011. I’m still very critical of its plan to take part of that money and buy shareholder loyalty when a well-executed turnaround plan is far more lucrative and the money could be put back into a business hollowed out by mismanagement for nearly a decade.

In the last six months, Yahoo! Inc. (NASDAQ:YHOO)’s stock rose 23.7%, ahead of Google Inc (NASDAQ:GOOG), which is up 19.8% while the Dow Jones Internet Index Fund, which tracks the performance of the leading Dow Jones Internet companies, including both Google and Yahoo, rose 19.5%. Yahoo is still not trading at a premium as investors are still not wholly convinced of the future viability of this new Yahoo! Inc. (NASDAQ:YHOO). But as we’ve seen with other technology giants that have tried to alter their fortunes, the market loves a plan so much more than no plan. Mayer’s plan right now is focused on revenue and improving what Yahoo still offers. The remake will have to come later.

The article Yahoo’s Google Move Makes Sense originally appeared on Fool.com and is written by Peter Pham.

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