Yahoo! Inc. (YHOO): This Internet Stock Isn’t Out Of The Woods Yet

When the name of a company is both a noun and a verb, you know you’ve got a special company on your hands. Instead of having to reference volumes of an encyclopedia to find more information about a subject, you can simply get on your computer and Google Inc (NASDAQ:GOOG) it.

In January, the company reported full-year 2012 results, and the market loved what the company had to say. Revenue soared more than 30% year-over-year, and has more than doubled since 2008. Diluted earnings per share clocked in at $32.31 per share.

The good times kept rolling for Google Inc (NASDAQ:GOOG) in the first quarter, as revenue and diluted EPS rose another 31% and 14%, respectively.

The Foolish conclusion

As of now, Yahoo! looks like an unfinished project. The company has undoubted tailwinds, including a CEO with star power, promising M&A activity and a slew of valuable assets. At the same time, the company’s core operations, namely display revenue, continue to under-perform.

As a result, investors have better choices among tech stocks than Yahoo! Inc. (NASDAQ:YHOO). Growth investors should favor Google Inc (NASDAQ:GOOG), which appears to be unstoppable and has the growth rates to prove it. Investors who value income, meanwhile, should prefer Cisco Systems, Inc. (NASDAQ:CSCO) for its hefty yield and strong dividend growth.

The article This Internet Stock Isn’t Out Of The Woods Yet originally appeared on Fool.com.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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