Yahoo: Too Early to Call a Turnaround

With a disappointing second-quarter earnings report and outlook for the current quarter, Yahoo (NASDAQ:YHOO) provided few signs that a slump in Internet advertising will abate anytime soon.

Via BusinessWeek.com -- The Internet company said on July 21 that the poor economy continues to hobble its mainstay online display ads as well as search advertising. "Overall, we're seeing less fear in the marketplace and advertisers are making plans," Yahoo (YHOO) Chief Executive Carol Bartz told analysts during a conference call. But "it's just too early to call" a turnaround, she said.

Yahoo also said it will need to make some costly investments in its far-flung online properties, in promoting its brand, and in its advertising systems. The investments will mean lower revenues and higher costs in the near term. That led investors to sell Yahoo shares after the stock market closed. The shares fell about 3% in extended trading, after closing down 26¢, or 1.53%, at 16.75, on July 21.

Keep Reading - Click Here>>

source: http://www.businessweek.com/technology/content/jul2009/tc20090721_954463...