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Oct17
Yahoo profits drop by 38% for the 3rd Quarter

With Yahoo's recent warnings concerning a soft ad market for them because of automotive and finance companies using their business less, results are out that they dropped in profits by 38% for the 3rd quarter; they finished with $158 million.

While Yahoo (YHOO) has some short-term problems, the verdict isn't out yet on whether they are related to steep failure within the company itself, or the endless press coverage that Google (GOOG) has been getting.

That, and Yahoo being slow to get their products to market is making a lot of people very edgy on the outlook for the company. Analysts believe that Yahoo isn't doing as good as job as their competitors on terry semel.jpgmeeting their customer's advertising needs.

"While we are tremendously excited about many things happening at Yahoo, we are not satisfied with our third quarter financial performance," chairman Terry Semel said.

I personally don't see this as being something to be overly concerned with at this time; either for the overall online advertising market or for Yahoo. Many companies are shifting their ad spend to other companies, not taking it out of play.

A lot of what is happening is perception, more than it is reality, as the big acquisitions of MySpace and YouTube are what is being used by the press to measure the success of a company. Yahoo, because of its perception of being slow, along with their competitors buying up what looks like lucrative potential, is making them look somewhat like an "old" company, rather than one that is exciting to be part of.

The long-term strategy and execution is what will decide all of this, not the ups and downs of hyped-up news stories.


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