* Yahoo needs to grow earnings faster than Google (GOOG) to regain investor interest.
* It can do that by cutting costs, growing audience, acquisitions or improving monetization [or some combination of all four].
* It is easier to drive monetization than to increase audience markedly, and acquisitions are a mug's game without better monetization tools. Cutting costs is a non-starter.
* Yahoo trumps Google on total audience, as well as page views.
* Yahoo's monetization is about to improve [to some degree] because of Panama.
* It is easier for Yahoo to make a significant improvement in monetization than it is for Google.
* Google's monetization engine works well, while Yahoo's doesn't. It's always easier to get a big change from a crummy start position than it is to make a big change from a great start position.
* Yahoo's stock is hated, while Google's is loved.
* Yahoo will outperform Google [and the market] in 2007
GOOG/YHOO 1-yr comparison chart