posted on January 14, 2001 08:16:15 AM new
If you want to watch Yahoo stock simulating a shot-down Nazi war plane, go to
http://cnet.search.com/search?timeout=3&tag=ex.cn.1.srch.cnet&q=yahoo
Looks like they're drawing one-half of a Grand Canyon on the chart!
I don't wish to be argumentative, but I really don't think the plummeting of Yahoo stock has a thing to do with charging sellers a listing fee. Yahoo is widely held by many large mutual fund companies, and other such entities - who are reacting, in my opinion, to the bad financial reports on Yahoo, and probably aren't even aware of the "inside Yahoo war," nor do I think they would care if they knew. Many of the dot coms have seen their value decline recently, not just Yahoo.
Just my opinion.
Rebel, let me ask - why Rebel? Southern or rebellious?
posted on January 14, 2001 08:35:35 AM new
Confederate reenactor.
In any event, no I don't think the stocks are reflecting the migration away from the auction site yet. The stocks are reflective of the loss of faith by investors for a company that has no REAL revenue generation. The fees for the auction are to demonstrate that Yahoo does have capabilities to create profit without relying almost solely on advertising sales. If they fail, they are probably done. Experts are predicting the stock to drop to $14 a share before anything can turn-around anyway at this point.
posted on January 14, 2001 04:16:00 PM new
The reason for listing fees is because some Yahoo exec told the Auctions people to generate some income and fast. Listing fees are the easiest way for them to charge because you don't need a support staff to deal with all the disputes for busted deals and refunds.
The reason fees are required, and the reason the stock price went down is 2 fold: First of all, the internet bubble burst. All .com companys were gigantically overpriced. Only Yahoo and ePay were makeing any money to begin with, and at first advertisers fell for Yahoo's game plan to buy banner ads for Web pages. Then advertisers noticed little or no effect in sales for their ad money spent. That's what I thought was going to happen. Unlike Television commercials where you have to watch or look away, with the banner ad on your browser, you can simply ignore it. Not only that but much of the advertising was done by other .com companys who are now in no position to buy much of anything.
So ad Rates yahoo used to charge are unheard of any more, and have been dropping steadily for a year. Their old business model doesn't work. If it had, Yahoo would likely have kept the listings free, to attract "hits" which is the measure they use to sell advertising.
Here's another business model that is failing: Priceline.com where you "name your own price." What a BS concept. And as they are fading into the sunset with a stock price less than $1.00, they rubbed it in our face with that screetching guitar ad that mwkes you run to your remote to mute the sound. To Priceline I wish to say: Buh-bye.
