Yahoo net profit falls 11 percent


SAN FRANCISCO (Reuters) - Yahoo Inc. reported on Tuesday an 11 percent fall in quarterly profit, missing Wall Street estimates as a new advertising system aimed at clawing back market share from Google has yet to take hold.

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Founders Note:
This keeps up for too long and Google will be the only player.


Google the only player

They are part the way there already :)

I hate overture yahoo,

I hate overture yahoo, whatever they call it. Takes ages to fill in your keywords and then they throw half of them out from human moderation. If you want to pay for it let the algo sort it out.

They shoud swallow their pride

and just use google for search like AOL... Email/Portal/Content Aggregation is their strength and should focus on increasing its user base and ways to keep them within their network. Also Display is their core strength and should focus on it (probably should increase their stake in right media to 100%)

Also a side effect of using branded google powered search is it may stop those millions of yahoo email users going to google just for search!

Down on higher costs NOT

Down on higher costs NOT decreased revenue.

I wouldn't plan a wake for Yahoo! just yet, with $1.67 billion in revenue they are still breathing ;)

The company's first-quarter profit was down 11 percent on higher operating costs, while analysts were counting on a boost from the company's updated ad feature, Panama.

But the company was hard hit by an 11.5 percent increase in operating expenses to $789.2 million, or 47 percent of revenue.

Analysts had, on average, expected a profit of 11 cents a share.

Stronger demand for the company's online ads boosted sales 7 percent to $1.67 billion.


How fast is the market growing?

>>Stronger demand for the company's online ads boosted sales 7 percent

Does a 7% growth in sales constitute a drop in marketshare?


Some of the keywords here are "analysts were counting on" and "Analysts had...expected." The results were basically in line with YHOO's guidance, so these (ahem) analysts shouldn't have been very surprised.

Maybe advertisers are

Maybe advertisers are catching up to the ridiculous amount of click fraud by Yahoo!'s "search partners".

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