Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online search provider Yahoo! (NASDAQ:YHOO) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Yahoo!'s business and see what CAPS investors are saying about the stock right now.

Yahoo! facts

Headquarters (Founded)

Sunnyvale, Calif. (1994)

Market Cap

$21.32 billion


Internet software and services

Trailing-12-Month Revenue

$6.46 billion


CEO Carol Bartz

Chief Technology Officer Aristotle Balogh

Compound Annual Revenue and Net Income Growth (Over Past 3 Years)

0.2% and (7.3%)

Cash / Debt

$3.29 billion / $83 million

Price-to-Earnings (YHOO and Industry)

147.1 and 43.1




Microsoft (NASDAQ:MSFT)

CAPS Members Bearish on YHOO Also Bearish on


Ford Motor (NYSE:F)

CAPS Members Bullish on YHOO Also Bullish on

Cisco Systems (NASDAQ:CSCO)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 20% of the 4,770 members who have rated Yahoo! believe the stock will underperform the S&P 500 going forward. These bears include ozzfan1317 and All-Star HollywoodDan, who is ranked in the top 10% of our community.

In October last year, ozzfan1371 encouraged Fools to search someplace else: "Negative Revenue and Earnings growth. They are losing Market share to Microsoft and have an outdated product that most don't even use anymore. Balance sheet is excellent so they will survive but I don't see much upside unless they get bought out."

In a pitch from just last week, HollywoodDan also booed Yahoo!:

Identity crisis. Who are they supposed to be now, AOL? Mediocrity, the Net's equivalent of a tv broadcast network. Probably be around for awhile but won't crush market and likely to get nibbled away at, into declining sales by younger smaller more focused players. [Terry Semel] and [Jerry Yang] probably also did damage to morale, focus and quality of personnel that can never be fixed with no clear vision.

What do you think about Yahoo!, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple and Ford are Motley Fool Stock Advisor picks, Google is a recommendation of Rule Breakers, and Microsoft is an Inside Value choice. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool's disclosure policy always gets a perfect score.