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YAHOO - Will "double" over the next 12 months

|Includes: AABA, LookSmart Group, Inc. (LKST)

I have no doubt in my mind that Yahoo are doing everything "right" since Carol Bartz's having taken over the reign. And their (pre-Q4) move to make the RME (the Right Media Exchange) a "Premium" Only exchange, was a stroke of genius.

It will all pan out beautifully, following the DOJ approval of the deal with Microsoft, that should be late February early March, is my guess. And I had expected a 'turn around' in their results today.

From within my post [ GOOGLE - Showing Signs of being ... Under The Pump? ] the following was noted:

[ From a recent report put out by Efficient Frontier ........ ]

< Google's share of spend also rose, but at a slightly slower rate, moving up from 73.9% in Q3 to 74.5% in Q4........ While Yahoo! gave up significant share in clicks they lost only 0.5% in spend as a strengthening CPC at Yahoo! offset some of the click loss.>

This augers well for Yahoo's own earnings report, IMO.

The fact that Yahoo who gave up 4.3% in click share (in Q4) but lost only 0.05% in spend (and as a result of a strengthening CPC) is a direct reflection on it's RME (the Right Media Exchange) moving to the Premium level, for the Q4 period.

Looksmart's shareholders must remember that recently departed (dismissed?) CEO Ted West had previously advised of the fact that TAC (for Looksmart) had improved going out of Q3 and it was felt that this should remain sustainable during Q4.>

And it was partly on West's above statement that I have based LOOK's traffic (for the full Q4 period - Alexa), as being of the Premium variety.

From Yahoo Report today:

< "The fourth quarter marked a strong finish to 2009, which was a transformative year for Yahoo!," said Yahoo! Chief Executive Officer Carol Bartz.

"We beat the high end of our revenue guidance, saw demand for premium display advertising improve significantly, and grew Owned & Operated search advertising revenue sequentially for the first time since the third quarter of 2008.

"Our business has positive momentum and we feel good as we head into 2010",  said Bartz. "We're pleased that the midpoint of our Q1 revenue outlook marks the first quarter of year-over-year growth in six quarters."  

Business Highlights

•Owned & Operated display advertising revenue grew 26 percent compared to the third quarter of 2009 – compared to a 16 percent increase during the same period in 2008.

•Owned & Operated search advertising revenue continued to stabilize, increasing 4 percent compared to the third quarter of 2009, the first sequential increase since the third quarter of 2008.>

This all augers well for Looksmart & it's own Q4 revenues and profitabilty, I feel.

The biggest thrill for a Looksmart shareholder (coming out of Yahoo's Report) is that the Yahoo Traffic (to Looksmart's AdCenter), IS, of the "PREMIUM" variety.

Check "ClickStream" here -

Yahoo's Right Media Exchange's 'move' to being a Premium Exchange was pre- Q4 and should somewhat parallel Looksmart's growth in traffic "managed", during this period.

Trailing 7 days Trailing 1 month Trailing 3 months Trailing 6 months Max

Punters need to disregard the the minus 7% of global Internet users who visit as it has to contend with a "huge" spike had in the previous 3 months, when during what I maintain was a "test" period, Traffic got to (at least), some 10 times more that it's currrent average. As is shown here:

Trailing 7 days Trailing 1 month Trailing 3 months Trailing 6 months Max

I continue to maintain that Looksmart's AdCenter is the "pea" to being the much needed "inter-connector" or, will get to provide that necessary, neutral  "inter-operability" between the buy and sell side (among publisher Exchanges and DSP's) and will independently get to eventually manage or, be that totally transparent 'central' (switching), control. All, IMHO. - Time will tell, of course. It mostly always does. 

YHOO4:00pm ET: $15.99  Up 0.13 (+ 0.82%) 

LOOK: At 3:59PM ET: $0.9899  Down 0.0001 (- 0.01%) 


Disclosure: Long LOOK