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Summary:

Terry Semel-Sue Decker-Jerry Yang drama had us all distracted from the fact that Yahoo (YHOO) is going to report yet another bad quarter. The company told Wall Street analysts that the June quarter is going to come in towards the lower half of revenue and EBITDA […]

Terry Semel-Sue Decker-Jerry Yang drama had us all distracted from the fact that Yahoo (YHOO) is going to report yet another bad quarter. The company told Wall Street analysts that the June quarter is going to come in towards the lower half of revenue and EBITDA guidance. Ditto for the second half of 2007.

So nothing really has changed. The trouble this time is coming from display advertising side of the business, one segment Yahoo has been traditionally very strong. This is going to get worse: Google just got into the display advertising game with DoubleClick.

On the upside, Panama is doing better than expected – but that isn’t enough to get Wall Street jumping with joy. Stock is trading down this morning, and has given up some of its post-Semel exit gains.

“Management’s comments regarding bottom half of the guidance range for financial results is a clear negative,” writes Ben Schachter, Internet analyst for UBS Research in a note to his clients. “The bottom line is that we would have liked to see a more radical departure from the past.” Citibank cut its second quarter revenue estimates from $1.244 billion to $1.228 billion and 2007 revenues from $5.125 billion to $5.075 billion.

Additional Reading:
* Don’t blame Panama, Real Threat Facing Yahoo

  1. Earlier today I saw Yahoo Autos delivering ads through Google Adsense – http://www.kaujalgi.net/?p=55. Maybe this is connected to Terry’s leaving.

    Also, I wondering if I should be confident of the new Search Marketing from Yahoo!

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  2. It’s definitely all about advertising.

    I’m surprised these companies aren’t trying to make a stronger push into the e-mail advertising market. I just seen some statistics stating that there are over 20 billion spam-free e-mail messages sent per day. That works out to something like 7.3 trillion messages per year.

    If you figure that Yahoo! has an entire index size of just 19.2 billion web pages, you can quickly see how communication has potential to bring in large amounts of revenue. With that said, I think targeting is still way off, so it’s hard to monetize.

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  3. Nice catch Om. Just as you said, I really, really wish they would get its act together. It is frustrating to watch this slow-motion train wreck. I have little confidence in this latest attempt at reorg (with all due respect to JerrY!)

    Y! needs massive house-cleaning.

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  4. Robert,

    So your answer is to tap into the “spam free” messages that are sent and turn them into spam? Fvckin great idea!

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