By David Utter
Expert Author
Article Date: 2005-09-23
At $31 a share, Yahoo certainly costs less than Google, it probably isn't undervalued, but it might be time to buy.
Jim Cramer's latest take on Yahoo stock, just as its founders get a mention on Forbes' 400 Richest Americans list, writes on TheStreet.com that while Yahoo's earnings multiples match Google's, Yahoo may be the growth stock of choice.
Mr. Cramer thinks as Google appreciates, it will bring Yahoo along for the ride:
"Look, Yahoo!'s never going to be cheap. It still has a giant market cap of more than $40 billion, but it is now down for the 15% for the year. That seems extreme. It's even down year-over-year."
Mr. Cramer notes how Yahoo and Google are having an impact on newspapers. As has been noted on WebProNews before, the fight for local search and online advertising is increasing, as advertisers find better prices and more effective use of media dollars online.
