July 11 (Bloomberg) -- Yahoo! Inc. lost the battle with Google Inc. in searching the Internet and now may have jeopardized its lead in display advertisements.
Even a new chief executive officer and head of sales may not be able to prevent rival social-networking sites MySpace and Facebook Inc. from eroding Yahoo's revenue from the banner ads that make up about 40 percent of the company's sales.
Yahoo, boxed in by Google in search and by newer competitors elsewhere, hasn't been able to develop original products that will give it an unassailable position. With co-founder Jerry Yang installed as CEO three weeks ago and the stock trading 38 percent below its five-year high, Yahoo shares look cheap to 18 analysts who rate the stock ``buy.'' They may get even cheaper.
``It's very possible the stock could go down,'' said Scott Kessler, an analyst at Standard & Poor's in New York who rates the shares ``hold.'' ``People are coming to the conclusion that the recent changes will cause some kind of stock appreciation and operational improvement. I just don't see it.''
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