Is Yahoo! Inc. (YHOO) Expensive Now?

Investors might like Facebook Inc (NASDAQ:FB) with its leading global position in social with around 1.11 billion monthly active users. Thus, the market values each of Facebook’s users at around $57.85. The ownership of the huge amount of personal data around the globe is the invaluable asset for Facebook to monetize in the future. Google Inc (NASDAQ:GOOG), on the other hand, is the global leader in the search business, which brought a lot of ad revenue to the company.

Both Facebook Inc (NASDAQ:FB) and Google have been quite successfully penetrating the fast-growing mobile market. Facebook’s mobile monthly active users reached 751 million in the first quarter 2013, with a significant year-over-year growth of 54%. Google Inc (NASDAQ:GOOG), with the Android operating system, accounted for around 75% of the total smartphone market and more than 56% of the tablet market.

The world trend is moving to mobile and tablets. In order to stay competitive with Google and Facebook, Yahoo! Inc. (NASDAQ:YHOO) must spend both effort and capital growing the business in the mobile and tablet market. While Facebook Inc (NASDAQ:FB) has  tremendous, invaluable personal data on more than 1.1 billion people, Google Inc (NASDAQ:GOOG) has its edge with search and its Android operating system. Yahoo! really needs to create strong and innovative products for users to stick to the site, which could in turn grow the company’s ad revenue in the long run. Its acquisition of Tumblr is expected to grow its audience to more than one billion monthly visitors.

My Foolish take

Personally, I was not excited about Yahoo! Inc. (NASDAQ:YHOO) at its current trading price because of its high valuation, sluggish 2013 outlook and declining ad revenue. Among the three companies, I like Facebook due to its huge personal data bank. I also like Google with its global leading position in the search market. Both companies will benefit a lot with their dominant positions in a fast-growing mobile market segment.

The article Is Yahoo! Expensive Now? originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOG). Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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