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