Blog Post

Yahoo’s Ad System Delay May Benefit Google; $10 Billion Wiped Out In A Day

Well, that’s an obvious conclusion…Yahoo, which announced the delay of critical improvements its search-advertising system yesterday with Q2 results, may end up giving Google a chance to grab more of the booming online-advertising market and widen its lead over both Yahoo and Microsoft…poor Yahoo’s shares have tanked today in an over-reaction (I think).
Today 22 percent stock-price fall was Yahoo’s biggest one-day percentage decline ever and cut about $10 billion off the company’s market capitalization.
Both Microsoft and Google are reporting numbers tomorrow, so everyone will be watching for clues as to whether Yahoo’s misstep is part of a broader trend. The reports will likely show that even with Yahoo struggling, Microsoft is still losing ground to Google in the heated battle for online ads.