What’s up at Yahoo! (YHOO)

It seems strange that a company with little positive news and a limited outlook in a sector surrounded by sharp-toothed competition would be doing well. But that’s just what Yahoo! (Nasdaq: YHOO) has been doing over the past two weeks.

With the arrival of its new CEO, Carol Bartz, investors seem to have given YHOO another shot. And they’ve given her some distance after disastrous founder/CEO Jerry Yang’s “crash and burn.”

Even though Bartz hasn’t made any definitive statements of her specific intent, the stock has done well. Over the past two weeks Yahoo! has moved up almost 20% while the Nasdaq has added only 3.5%. Clearly investors expect better results from her, and are hoping for it.

This comes as Google (Nasdaq: GOOG) and Microsoft (Nasdaq: MSFT) circle their wagons – And circle like vultures. Yahoo’s competitors must realize they are at a precipice where their next steps (or missteps) could decide who rules Web 3.0.

Google has been leading the pack lately with positive news on that front, and it continues to pour in.

The best piece of advice that we can think for Yahoo! to heed is this: Look to the successful web profit models. If you can figure out how to provide a content, platform, or product that will enable them to make more money – you will survive.

If you don’t, and if you’re clinging to the last vestiges of Web 1.2 , then I’d prepare to go the way of beta, the 8-track, the floppy disk and Jerry Yang. 

Companies mentioned in this article: YHOO, GOOG and MSFT.

• Yahoo! Lets Go, Google Takes Over
• Microsoft’s (Nasdaq: MSFT) Miss Shouldn’t Surprise
• Google Takes MSFT Head on

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