Are You Googling on Yahoo?
Tuesday, July 25th, 2006One of our party guests at the Hawaiian Luau said something to me which had me cracking up. I was just reminded of this when I was reading Will Yahoo! Shares Bounce Back? Now, mind you it was 2am and I should say I had been running on 6 hours of sleep for the past 3 days and I was also working on my 8th frozen Chi-Chi Cocktail.
So, this guest was an MBA Student and their class had recently been discussing the fall of Yahoo’s shares. As soon as she found out I was in the Internet business she jumped at the opportunity to ask me what I thought about all of this. They were expected to come up with a thorough analysis and explain to the class their findings.
She excitedly talked to me about Market Cap, Price to Earning Ratio’s, Volume and a bunch of other fundamentals which really was the last thing I needed to be talking about at that moment. But I had to play the nice host and the things she was saying all sounded like very smart MBA stuff. So I let her explain to me what her findings were.
MBA students have an amazing ability to talk about very sophisticated things but typically miss the obvious.
In her speech to me about how wonderful Yahoo was and why the drop in share price made no sense she would also repeatedly say, “I much prefer to Google on Yahoo!”
So after a few more minutes of listening to her speak, I said
I am no expert in finance and everything your saying sounds really good but if I was to address your class I would not talk about Price to Earnings or Market Cap. I would not even address the topic of Yahoos Stock.
I would have to address the subject of what it means to the Search Market when smart MBA students are saying things like “I much prefer to Google on Yahoo!”





