Priorities and the modern internet company
Wednesday, October 11, 2006
It's all about the allocation of a limited amount of resources to make the most profit in the shortest period of time. It's all about priorities.
While google is investing large amounts of stock (in turn some of it will become cash), Yahoo is investing a lot of nothing into nothing.
In case you live under a rock, google bought YouTube
, and Yahoo is beaming 0s and 1s into space
in the form of a digital time capsule.
I'm all about the exploration of space and all that is tech/computer geeky in this and the nether world, but the hard reality of market valuations is that it is all about positive NPV (Net Present Value) investments. One of these companies is literally beaming money into empty space.
They are both cool projects, but shareholders may care a bit more about one "investment" than the other. And I'm not saying which one.