Yandex: Can It Stretch Search?
May 24, 2011
“Russia’s Yandex Offered at Double Google Value as Ads Surge” suggests some expansion in Yandex’s value. BusinessWeek does not cheer lead. Business Week points out that
The Moscow-based company, which has almost triple Google’s market share in Russia, plans to sell shares at a price equivalent to at least 23 times next year’s earnings…
Does Yandex pose a threat to Google outside the home turf of the Yandexers? Sure does. Three reasons:
- There is the proven ad model and Yandex has not been layered with search engine optimization encrustations, legal hassles, squabbles with nation states, and what I call Google fatigue
- The system works. I don’t read, write, or speak Russian. But two of my associates do. Some of our content is indexed by Yandex. Interesting that our English only information finds its way into the system.
- Google’s garden hose of ads may be keeping some folks at bay. Can a Proctor & Gamble sales person make up for some missteps? Maybe but Yandex may offer an alternative without the splash of the Google.
As an aside, Yandex has accomplished what Endeca and dozens of other search companies have not accomplished: an IPO. That’s important to me because getting financial information about private firms’ performance is tough. The US SEC is not flawless, but the reports provide some information even if shaped by green eye shade types with McKinsey on their cvs. Now let us see Yandex stretch and be well rounded in revenue and net profit.
Stephen E Arnold, May 24, 2011
Freebie
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