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According to the article you linked to, Yahoo is struggling to attract teens and young adults.
Last year marked the first time Yahoo's earnings have dropped from the previous year since the company lost $93 million in 2001 during the aftermath of the dot-com bust.
Unlike in 2001, Yahoo hasn't stopped making money. But the company's 2007 profit fell 12 percent to $660 million even though advertisers spent more than ever on the Internet, where Yahoo still draws one of the Web's largest audiences.
They took in more money, but earned less profit.
According to the article you linked to, Yahoo is struggling to attract teens and young adults
Before I even read the link I knew that somebody was going to point to social media.
Yahoo also has been struggling to attract teenagers and young adults who are gravitating to more trendy online hangouts like Facebook.com and News Corp.'s MySpace.com.
Interesting... I had no idea how they did it, but Google is considered "cool" to the younger generation, and hence they are probably loyal users.
I was watching MSNBC the other night and they were talking about Y Answers and you keep hearing about their OMG site. I think its a great time to invest in Yahoo while their stock is down.
Y! is not going anywhere.
I've been hearing predictions about the impending demise of Yahoo since the last dot-bust, and they still keep slogging on, coming up with new services, and managing to turn a profit.
I think Y is suffering a bit because of the perpetual comparison to Google, which is a bit unfair. Y is primarily a content presence, G is primarily a search engine and advertising platform.
Also Y tends to be more open in their reporting and governance, so it gives the press fodder every time they make a move. G is opaque when it comes to governance and their reporting. That will only work for G until they have a bad quarter or two (which every company eventually does), and then the investors will revolt and force the G management to, you know, do what they're supposed to do and tell the investors what's going on underneath the infamous G cone of silence.
Another thing that really pisses me off is how Yahoo does its e-mail...every time I get a complaint from a member saying they didn't get their confirmation e-mail it's a Yahoo customer (or AOL, but mostly Yahoo now). I decided to test a sign-up with my old Yahoo e-mail account. It DID show up in the spam filter, but it did NOT show any in there until I clicked on the spam box just to make sure and voilà, there it was. No wonder people are getting mad at them! They are making it miserable to do anything on the web and let real spam and crap through! I mean they are just getting worse by the day. IDK, they are, most certainly, in trouble...YEARS of crap service are catching up now.
Heck, I tried getting our Yahoo listing changed some time ago and not ONE peep. I, for one, am fed up with them. Just MHO!
[edited by: WiseWebDude at 4:03 pm (utc) on Jan. 30, 2008]
I think the most interesting stat from the earnings call was that revenue from 3rd party publishers (read YPN) was down 20%. That is people dropping YPN for other programs
I would have thought YPN publishers contributed a tiny amount compared to YSM search partners. I personally think the revenue from 3rd party publishers being down is more likely to be due to decreasing bid prices, than people leaving for different networks.
In the UK they may as well give up the ghost - they have to get market share in order to boost the YSM PPC rates and attract more advertisers - that way they will make more money...
That ain't gonna happen!