YHOO has a market cap of $35 billion, while GOOG is over $120 billion. Does that mean YHOO is a better value? Why? Which company is more undervalued in the current market, based on market perceptions compared to the real fundamantals of the companies, in your opinion? GOOG seems like the leader in search and has had meteoric growth, but can YHOO catch up? If I was to give you $10,000 today, how would you allocate it between the two stocks? If you have special insight, live in Silicon Valley, work there or know people who work at the companies, please shed light on your view of the future and what it means for both stocks.

I don't know, I like Google better for basic internet and book searches, but I like Yahoo better for image searches.

" Which stock is cheaper and why, Yahoo or Google?"Well, that is obvious by looking at the quotes, Yahoo is "cheaper".I think Google is a better choice, and value, all considered. They both have their own features and quirks, but Google in my opinion is and has been, a forward looking and dynamic company. They are more than just a search engine, they are an Internet resource of many colors. Yahoo is more services related in my opinion. They will stick to end user applications, unlike Google who seems to play into the under the hood crowd, the "twidget" if you will :)http://finance.yahoo.com/q?s=googhttp://finance.yahoo.com/q?s=YHOO

Yahoo has a lower PE therefore is cheaper.

Neither is what I would call cheap. They are both very expensive relative to their income and assets. But Yahoo is definitely the least expensive of the two, based on PE. Frankly, I would not put $10,000 into either one. They are both too expensive. Too much risk. The economy appears to be slowing. Do you have any idea what that is likely to do to advertising revenue? Next year, if the economy does slow, you will be able to pick them both up at 1/2 price or less.