SOURCE: Pike & Fischer

March 21, 2007 14:41 ET

Yahoo! to Resurge in 2007, According to New Analysis by Pike & Fischer

SILVER SPRING, MD -- (MARKET WIRE) -- March 21, 2007 -- Yahoo!'s revenue growth has weakened in recent quarters as it faces increased competition, alternatives to search-based advertising and a thunderous stampede toward social-networking sites such as MySpace and YouTube. But market research firm Pike & Fischer concludes that the company is on the verge of a comeback.

In a new analysis, P&F forecasts that Yahoo! will expand its user base significantly thanks to its aggressive recruitment of top scientists and its acquisition of such innovative social-networking and video services as and Jumpcut. In addition, P&F projects that Yahoo!'s investment in such initiatives as its "Project Panama" -- designed to improve search accuracy and increase click-throughs for paid advertisers -- will narrow Google's lead in online ad sales.

"Yahoo!'s expansion into mobile content delivery and broadband video -- as well as a number of other initiatives -- will better position the company to compete with Google, AOL, and a host of established and burgeoning sites vying for advertising dollars," says Tim Deal, Senior Analyst for P&F's Broadband Advisory Services and author of the report.

Deal adds that Yahoo! is staffing its research department with a formidable array of research scientists who can drive the development of innovative products and services that will improve the company's competitive position.

But while these initiatives will result in increased sales in the long term, the company will face an increase in operating costs this year, Deal cautions. And Yahoo! must do a better job of marketing and monetizing the innovations developed in its labs, he adds.

Pike & Fischer, a BNA company, offers a host of legal and business information products covering the telecommunications industry. Yahoo! Business Strategy Analysis is priced at $799 and can be purchased at For analyst commentary or an executive summary, contact Tim Deal at 301-576-4096 /

For more information about Pike & Fischer's Broadband Advisory Services, visit or contact Jonathan Wentworth Ping at 212-576-8741 /

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