Alcaraz Research Blog | The Yahoo Finance Contributors Network Is A Future Tailwind | Talkmarkets
Owner/Manager/Art Director at Alcaraz

Almario Alexej Alcaraz Jr. is a small investor from the Philippines. Is learning options. Is a player in the lucrative Philippine local political arena. Used to work for advertising/marketing/printing companies. Studied mathematics/advertising/computer science. Likes grinding ... more

The Yahoo Finance Contributors Network Is A Future Tailwind

Date: Tuesday, January 6, 2015 6:44 PM EDT

I hitched my star to the Yahoo (NASDAQ:YHOO) bandwagon last May due to the Alibaba (NYSE:BABA) IPO. However, the main focus of this article is not how accurate my prediction was about the Alibaba windfall. I already did some profit taking but I remain long on YHOO because of Yahoo Finance's decision last July to put up its own Contributors Network.

I opine that Yahoo's decision to launch its own finance-focused Contributor Network is one of the best decisions made by Marissa Mayer. The company has heeded the call of millions of investors who intensely disliked the previous situation where Yahoo Finance was being paid to publish links to alleged pump and dump finance websites.

It is open knowledge that many finance/investment websites are full of deceptive and/or manipulative investment ideas authored by self-serving anonymous authors or stock promoters/attackers.

Even though Yahoo made good money from making paid referral links to articles published by disreputable third-party websites, Yahoo Finance did right in stopping the practice.

I opine that Marissa Mayer is thinking of the long-term when she decided to forgo the lucrative revenue from link referrals. Yahoo Finance's action improved its reputation among small retail investors.

Authors, Readers, Advertisers Will Defect To Yahoo Finance

Unfortunately, Seeking Alpha is one of the third-party websites that were kicked out of Yahoo Finance's news feed. I do not believe that Yahoo will use some of its Alibaba windfall cash to acquire Seeking Alpha or The Motley Fool.

I am predicting that the Tumblr-only Contributors Network will eventually grow to a more complex version that will rival the popularity of Seeking Alpha's crowd-sourced investing ideas business model.

Yahoo Finance is actively recruiting finance professionals to join its Contributor Network and I opine that many top authors of sites like Seeking Alpha and The Motley Fool will eventually lose their most-read writers to the Yahoo Finance Contributors Network.

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Craig Newman 5 years ago Member's comment

I just joined TalkMakets this month and I like it much more than Seeking Alpha which has a very boring interface and design and very specific type of content. Simply put, I can't find what I need there. But Yahoo Finance has everything and I'm still there every day. They are the real deal. Though I do admit I've been spending more and more time on TM since I really like the customized feeds I get here. Yahoo can be a bit overwhelming.

Can I read more of your work there? Can you provide the link? I enjoyed yours posts. Thanks.

Danny Straus 5 years ago Member's comment

I shared this article with a friend who used to work at Yahoo Finance until last year, and he said, "I 110% guarantee that the contributor stories have no impact on the YHOO bottom line." So I wouldn't expect to every make any serious money from it if I were you.

Danny Straus 5 years ago Member's comment

Sorry for the typo, I meant, I wouldn't expect to *ever* make any serious money if I were you.

Alexis Renault 5 years ago Member's comment

I just read the press release that TalkMarkets put out on Business Wire today:

I'm pretty new to TM but like it much more than Yahoo Finance. And I've been really impressed with the caliber of contributor they've managed to attract. Big names like Mark Cuban, etc. I've not been so impressed when its come to Yahoo. Plus it sounds like they are doing something really interesting with their equity program for contributors. Are you participating? How does that work? Sounds like they could give Yahoo a run for its money.

Dick Kaplan 5 years ago Member's comment

Interesting post. But I find Yahoo's content to be a but too geared to the masses/lay investor rather than the more sophisticated investor that I often find on sites like Seeking Alpha and TalkMarkets. Perhaps that will change if they attract more quality writers such as yourself. But their last foray into contributor generated content was a major flop. Why would this time be any different?