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Google (NASDAQ:GOOG) and Yahoo (NASDAQ:YHOO) shares dropped following Yahoo’s recent warning on revenue. A few days later, the Interactive Advertising Bureau (“IAB”) announced that internet advertising revenues rose 36% for the first half of 2006. Therefore, I thought it would be interesting to look at revenue growth at stocks in the Internet advertising sector.

The following chart shows year over year revenue growth (most recent quarter) for stocks covered in SeekingAlpha’s Internet advertising sector. Google and Yahoo are included for comparison purposes:

Data in table version:

Quarter Revenue Last Yr. YOY
Ticker Company Ending ($mm) ($mm) Increase%
(AQNT)aQuantive, Inc.06/30/06$105.63$77.1936.8%
(GOOG)Google Inc.06/30/06$2,455.99$1,384.4977.4%
(NASDAQ:MCHX)Marchex, Inc.06/30/06$31.71$21.1749.8%
(TFSM)24/7 Real Media, Inc.06/30/06$43.18$33.8927.4%
(THK)Think Partnership Inc.06/30/06$19.30$10.3187.2%
(VCLK)ValueClick, Inc.06/30/06$130.03$54.57138.3%
(YHOO)Yahoo! Inc.06/30/06$1,575.85$1,253.0025.8%

If we look at operating income growth over the same period, it is interesting to note that companies with positive operating income growth had operating income growth that closely mirrored their revenue growth.

(Note that Marchex (MCHX) had negative operating income for the quarter ending 6/30/06 and Think Partnership (THK) had negative operating income for the quarter ending 6/30/05).

The following charts show the performance of these stocks over the past twelve months.


Related Links: Yahoo's Warning: Bad News for Online Ad Networks, Publishers?Message from Yahoo's Warning: Broader Economy Still Impacts Online PropertiesSix Wall Street Reactions to Yahoo's WarningWhere Was Yahoo When The Ads Were Handed Out?aQuantive Comments On Graphical Ads, Rich Media and User-Generated Video
Conference call transcripts: aQuantive Q2 2006Google Q2 2006Marchex Q2 200624/7 Real Media Q2 2006ValueClick Q2 2006Yahoo! Q2 2006

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Source: Internet Advertising Stocks: Quarterly Revenue Growth