Analysts Troubled By Weak Yahoo Sales

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Credit: Corbis / Scott Speakes

The market is very unimpressed with Yahoo’s worse-than-expected results. The company’s stock is down nearly 8 percent, and in a series of reports, analysts say they are “worried,” “frustrated,” and “concerned” about the company’s tepid revenue growth and don’t see a comeback immediately ahead. A sampling of the commentary follows.

Meggan Friedman, William Blair & Co.: “While we applaud management’s progress with cost containment, we are concerned that growth has stalled at Yahoo (NSDQ: YHOO). And although we recognize that the number of page views is not the be-all and end-all measurement, the deceleration (and now decline) in page views every quarter since second quarter 2008 is a concern for us. We would look for an improvement in user engagement before becoming more constructive on the stock in the absence of foreseeable catalysts.”

Mark Mahaney, Citigroup: “While YHOO is fully delivering on Opex Controls and Operating Margin expansion and is taking the right shareholder friendly steps through share repo

2 Comments

markmay

exactly, how can these analysts be surprised about yahoo’s lackluster revenue growth. for now this is a story about expanding margins and share repurchases. the things they’re trying to do to revive topline growth will take time, though of course there’s uncertainty. moreover, there were some positive trends in search (stable mkt share, improving pricing)

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