Google and Yahoo

So Google and Yahoo have come out with their results. While Yahoo has really disappointed the market and has announced 1000 job cuts, Google just missed analyst forecasts by a whisker (one penny to be precise). I think it is time for Yahoo to stop trying the turnaround story by itself and accept Microsoft's bid. With the portfolio of websites they have got I think an MS managed Yahoo can compete with Google better.


BTW I think this is the first time Google has missed forecasts since they went public. And one aspect that caught my attention was Google CFO's remark that ads from social networking websites have not monetized as well as well they had expected it to. I think there are two reasons why this is happening. One, Orkut is less popular in US when compared to Brazil or India where internet ad spends and click potentials are lesser. Two, while ads in orkut are still being experimented and debated in India/Brazil, I think the risk of appearing in wrong forums would make advertisers shy away from this medium. Some more rejigs are necessary before this channle can really bring in the money.


The more interesting thing for me however is to see whether the projected recession will make advertisers seek to invest more in clearly accountable Internet advertising. Can this be the some kinda goldmine during tougher times?