I have been saying for sometime Goggle is not Yahoo!’s competition. Yahoo! just announced second quarter financials and the nay sayers have come out in droves. But I would like to point out that Yahoo! has been around longer than the nay sayers. They learned a valuable lesson from the last ad market bust and have diversified, something that is likely to bite Google in the end.

I found a post at Internet Outsider to be a breath of fresh air that really looks at what Yahoo! actually reported. They bulleted out some of the bright spots you may have missed from other reporting such as:

• Yahoo is outgrowing the market
• The company is still profitable
• Panama has increased revenue per search by 15% - 20% over last year
• Yahoo has 463 Million users, up 13% from last year, and is still growing
• Revenue is accelerating. The most profitable revenue stream, search and Yahoo! proprietary properties is growing faster than the rest of the business and is accelerating.

That last item is important. The key for Yahoo! isn’t search, its proprietary properties. Yahoo! has stickiness. People go to the Yahoo! properties and stay a long time. Goggle is an in and out business.

I hope that the leadership at Yahoo! doesn’t get caught in the game of comparing them to Google. If Yahoo! gets fixated on Google, that is when they will lose. Let the pundits make comparisons, but remember that they are comparing apples to oranges and saying they are the same because they are both fruit.