Yahoo still in sales rut as CEO Marissa Mayer unable to rev company engines

“Yahoo! on Tuesday said it will sell about one-third fewer Alibaba shares than expected — but even this shareholder-friendly news wasn’t enough to deodorize an otherwise stinky quarter,” Kaja Whitehouse reports for The New York Post.

“The Web portal reported that revenue minus traffic acquisition costs for the second quarter fell 3 percent from last year — well below analysts’ already dampened expectations for a gain of 8 percent,” Whitehouse reports. “Net earnings of 37 cents a share were up 5 percent from last year, but also fell short of expectations for 38 cents — minus commissions paid to partners for Web traffic.”

Yahoo CEO Marissa Mayer (photo by Brigitte Lacombe)
Yahoo CEO Marissa Mayer (photo by Brigitte Lacombe)
“Chief Executive Marissa Mayer’s surprise gift to shareholders of the additional Alibaba shares briefly pushed Yahoo! shares up in after-hours trading — but once the quarterly results were more fully digested, shares dipped 2.2 percent,” Whitehouse reports. “‘We are not satisfied with our results this past quarter,’ Mayer said on a conference call to discuss results.”

“She said she expects the issues to be fixed in the next two quarters, but made investors jittery with her prediction for a years-long revamp of the entire company,” Whitehouse reports. “‘A transformation of this size and scale will take multiple years,’ Mayer warned on the conference call.”

Read more in the full article here.

MacDailyNews Take: Yahoo’s engines, maybe not, but…

[Thanks to MacDailyNews Reader “Matthew R.” for the heads up.]


    1. I see it as a big gamble to think that one can come from behind to challenge Google by just “doing the same things better.”

      If I was to make a blind guess of what is better in the age of mobile, I would look for truly innovative MOBILE FIND. How do you do that?

      My guess would be a very simple app that says:

      What Do You Want? _________________________
      Within What Distance? _____________________

      Ya Who = _______________________

      Simplicity, simplicity, simplicity.

      Keep it simple and make it work 100%

      1. The company retains the ability to do search. They have the technology, the patents, and the people to do it. Microsoft simply has exclusive rights, but Marissa has wanted out of the deal practically from the day she became CEO.

  1. For what it’s worth, I think she needs to declare thermonuclear war on Google and leapfrog their search engine. Their other acquisitions and content initiatives have all been quite “meh.”

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.