This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Yahoo! Holds Off on Phone Ads

"It doesn't hurt to experiment with it," says Darren Chervitz of Jacob Asset Management, which owns shares of Yahoo! among $70 million under management. "Over time, it will occupy a decent niche, but I don't think it's going to revolutionize the search business."

Still, some online merchants have found click-to-call useful -- particularly on transactions involving high-end items. Consumers typically have a lot of questions before they make such purchases, says Craig Smith, who runs Trinity Insights, an e-commerce consulting firm based on Conshohocken, Pa., outside Philadelphia.

"When it's a straightforward purchase, it doesn't make sense," he says.

Click-to-call is the latest in a long line of potential bright spots that bullish investors hope will boost the lackluster performance of the Internet sector. Shares of Yahoo! are down 26% this year, and eBay is off 37%. Even Google is weak, down 9% after doubling in both 2004 and 2005.

"It's premature for people to get excited about click-to-call-related announcements," says Standard & Poor's analyst Scott Kessler, who rates Yahoo! a hold, in an interview.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EBAY $55.79 0.00%
GOOG $524.05 0.00%
YHOO $44.45 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs