Yahoo Watch

After the close yesterday, Yahoo (YHOO) reported earnings of 10 cents a share, a penny below forecasts. The stock is down about 11% this morning.
I think this is just the beginning. It looks like Panama has been completely overrated. I wish I could say I was surprised. I wouldn’t go near Yahoo until it’s at most $12 a share, which is about 60% below where it is now.
The AP noted:

”When you sift through everything, there is not a whole lot to get excited about right now,” said Cantor Fitzgerald analyst Derek Brown.
After subtracting advertising commissions, Yahoo’s revenue totaled $1.18 billion. That figure fell about $25 million shy of the average analyst projection.

Interestingly, the AP story began:

Investors were f – ) again until the Internet icon‘s disheartening first-quarter results ruined the mood.

Texting has hit the big time. Although, many news outlets changed it to:

Investors were falling in love with Yahoo Inc. again until the Internet icon’s disheartening first-quarter results ruined the mood.

Soon, they may be working Ctrl+Alt+Del into their ledes.
Seeking Alpha has a roundup of analysts’ reactions to Yahoo’s earnings.
Business Week writes that Yahoo’s next search will be for a new CEO. The company quotes CFO Sue Decker:

Chief Financial Officer Sue Decker attributed the decline to the phaseout of Microsoft’s search ad business and rising costs of driving traffic to Yahoo sites.

That’s like saying “we attributed the decline to our lousy business model.”
I say that Decker will replace Terry Semel before the summer is over.

Posted by on April 18th, 2007 at 9:48 am


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