I happen to use just about everything on Yahoo...but their mail! They are definitely richly valued, but at some point I can't help but expect them to rebound somewhat because the very drought on anything internet has nicely cleaned out their competition. Crazy 90's type valuations are gone and the current valuation is a bit high, but if it were to go under 10 I would say its a good long-term buy. After all nothing that depends on advertising revenue right now is doing well. Their current P/E isn't much of an indicator, because I don't think the model they are using right now will be the one they use 2 years from now. By then they will be charging a lot more and for a lot more things. Hard to charge when things are free, but those offering the freebies are going out of business while Yahoo has a huge hoard of cash and has no chance of going out of business. My guess is that a couple years from now they will be bought or buy some significant assets and be a fairly strong company. If you are engaged in short-term trading they are definitely not a company to get too involved in unless you are playing their heavily volatility and high volume status.