Why is Google the darling of the press and Yahoo can't seem to get no love?

Let's go to the tape:

Metric	Google	Yahoo
Who had more revenue?	Google: net revenue rose 110% to $1.05 billion	Yahoo: sales rose 42% to $932 million
Profits?	Google: net income rose more than sevenfold to $381 million, or a $1.32 a share	Yahoo: essentially unchanged from net income of $253.3 million, or 17 cents per share
Price - P/E Ratio:	Google: somewhere between 75 - 90	Yahoo: between 30 - 35

That 'sevenfold' increase is mostly due to Google paying Yahoo $201M for Overture patent licenses in 2004. So they're up about 33% from last year without the payment, and up 14% from Q2 2005. Not as crazy sounding...

Google's growing faster, is more profitable and is about 3 times more expensive. Yahoo may be a better deal, but it's not the market leader. Yahoo isn't the overt threat to Microsoft. That's a big reason that Google commands a premium over it's neighbor from Santa Clara Sunnyvale.

¶ 10/21/2005