Huge Net Capex: One-Time or Permanent?

The WSJ describes a key issue facing the big net companies, especially Google: massive (and increasing) capital spending.  Last week, for example, Google stated that 2006 CAPEX would “significantly exceed” 2005’s mind-boggling $800 million, prompting analysts to toss out 2006 estimates in the $1.25 to $1.5 billion range.  Yahoo! spent $400 million last year, up from $250 …

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NYT: Yahoo!’s LLoyd Braun Now “Gets” the Internet

One of the lingering risks about Yahoo, given Terry Semel’s Tinseltown roots, is that the company will lean too far toward becoming a “content company”–and thus wreck a business model that is more powerful than that of any content company on the planet.  Last year’s hiring of Lloyd Braun, a television bigwig, seemed another lurch …

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Canary in Search Coal Mine?

FTD (flower company) preannounced poor Q4 revenues today and blamed increased search marketing costs for the shortfall.  Although it would be silly to extrapolate the experience of a single retailer in a single vertical to the whole of e-commerce, such a data point could potentially signal impending trouble for Google, Yahoo!, and the rest of …

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