Yahoo!’s financial strategy, which relied on advertising for revenue, also seemed to be paying off. The day after the America Online–Time Warner press conference, it announced profits of $44.7 million for the fourth quarter of 1999. For the year as a whole, Yahoo! earned $61.1 million on revenues that had jumped 140 percent to $588.6 million. More than three thousand companies were now advertising on Yahoo! In anticipation of the earnings release, Yahoo!’s stock broke through $500, a new all-time high, valuing the firm at $131.6 billion. There is a lot of competition, but this may well have
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