Is Yahoo! Inc (YHOO) Finally Easing Out Of Stagnant Waters?

Yahoo! Inc. (YHOO)

Tuesday, 21st October, 2014, went down as an important milestone in Yahoo! Inc (NASDAQ:YHOO)’s history since it was the day when the company declared the revenue accrued from its mobile department. The third-quarter figure amounted to $200 million and in the eyes of Jan Dawson, Jackdaw Research’s Chief Analyst, it is a harbinger of bigger things to come for the company. Based on this amount, the estimated revenue earned by the company by this year-end is likely to touch $1.2 billion.

During his interview on CNBC, Jan Dawson attributed this bright outlook to a number of factors, principle amongst which was that Yahoo! Inc (NASDAQ:YHOO) as a company was inherently healthy and that its price-per-click was up by a significant 17%. Therefore, even though the figures over the last six quarters have shown a decline with this quarter’s earnings representing just a second increase over this duration, there is a distinct ray of optimism.

Yahoo! Inc. (YHOO)

A crucial factor in the Yahoo! Inc (NASDAQ:YHOO) revival story is the role played by its CEO Marissa Mayer who took over the mantle two years ago and since then has been busy implementing ways by which costs could be cut down and profits augmented. To this effect, she has indulged in several acquisitions, revamped the advertising technology and shut down as many as eight outlets in remote locations, thus causing more than 500 employees to be laid back.

With competitors like Google and Facebook being far ahead in the race, Yahoo’s CEO derives consolation from the fact that –

“We all came here to return an iconic company to greatness, and I’m so proud of what we have achieved. We’ve come really far, really fast.”

Given its weakness in advertising segment, the rise in share value of the stock by 1.1% to close at $40.61 can only be interpreted as the gradual easing out of Yahoo! Inc (NASDAQ:YHOO) from the position at which it has been lying stagnated over the last couple of years.

This article has been written by vinita Basu.

 

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