Yahoo Misses Analyst Estimates
July 21, 2009 by Mark Ellis
Filed under Business
Search engine giant Yahoo! Inc. has released third-quarter results that show that the company has not managed to exceed analyst expectations. Yahoo blames its underperformance on a general slowdown in advertisement spending on its websites, cutting into its revenue and resulting in a 3.9 percent fall in the value of its stocks.
While analyst expectations had Yahoo taking in about $1.56 billion in revenue for this quarter, Yahoo actually projects a $1.45 to $1.55 billion revenue intake. A reduction in online ad spending and stiff competition from Google do not bode well for Yahoo’s future, creating the possibility for even slower ad spending. Despite cutting down jobs and closing some of its websites, Yahoo still has trouble in the future.
Analysts have reinforced that Yahoo faces struggles from slower ad spending, stating that the situation has not yet bottomed out. Yahoo’s stock has fallen 66 cents to $16.09 today, signaling a lack of investor confidence in the company’s disappointing third-quarter results.
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