Are Changes Happening Fast Enough At Yahoo?
Yahoo reported earnings yesterday that were flat compared to analysts expectations and the stock was hit hard by traders. The selling continued today as investors and analysts ponder about the future of the company. Yahoo reported its quarterly earnings of $0.35 which was up from last year. Yahoo has been in the news recently due to the hire of Marissa Mayer nine months ago as the CEO, who was a former executive at Google. Mayer made headlines recently for telling Yahoo employees who work from home they needed to report to a company office in order to remain employed. The appeal was seen by some as a scaled-back effort to lower employee costs. The numbers released yesterday by Yahoo for the first three months of 2013 show that reducing costs maybe a necessary evil for the company while they explore new opportunities.
Yahoo said their display advertising revenue fell from a year ago by 11 percent to $402 million. Is Yahoo really making a comeback or is all the hype short-lived? The company has long lost its dominance as a search engine and continues to lose significant market share in display advertising. Yahoo has no social media play and aside from Flickr, the company never made serious headway into the image sharing/social media sector. Marissa Mayer may need some more time, however Yahoo investors have slowly watched their asset decrease in value. The company is trying to transform itself as a mobile content play with the addition of Summly which they purchased from a 17-year-old for $30 million. Yahoo may need to gain search engine market share and increase their content partnerships to compete with the likes of Facebook and Google.