YHOO vs GOOG (continued)

I first posted on these two stocks (as opposed to the two companies which I have also been posting a lot about lately) right after Yahoo!’s stock declined in the aftermath of a disappointing Q4 earnings report.

Well now Google has also posted a disappointing Q4 earnings report and has seen its stock go down about 20%.  YHOO is also down about 20% since its Q4 report.

It feels to me like a correction based on a resetting of expectations more than anything else.  A friend asked me tonite if this is likely to have any impact on consumer internet deals in Silicon Valley.

I can’t imagine it would.  If you look at the numbers that Google and Yahoo! are putting up, they continue to be incredibly impressive.  Maybe not impressive enough to satisfy the needs of investors who are paying >90x earnings for GOOG, but still amazing by almost any other measure.