Yahoo Shares Tumble On Report Of Slower Ad Sales - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Yahoo Shares Tumble On Report Of Slower Ad Sales

Reports of a weakening in some categories of online advertising caused Yahoo's stock to fall more than 12%.

Yahoo stock tumbled Tuesday after the entertainment portal's executives told an investors conference that they saw a weakening in some categories of online advertising.

In mid-afternoon trading on the Nasdaq stock exchange, Yahoo shares had fallen more than 12 percent to about $25. The sell off followed comments from Yahoo executives that advertising sales to automotive and financial services companies had slowed.

"They're still growing, but they're not growing as quickly as we might have hoped at this point in time," Yahoo Chief Executive Terry Semel told investors at a Goldman Sachs conference, according to a report on the Wall Street Journal Online.

Susan Decker, chief financial services officer for Yahoo, said the slowdown was having an impact on the company's quarter, and would likely lead to the portal reporting "in the bottom half of the range" of its third-quarter estimate, according to the Journal.

Online advertising has been the engine for revenue growth among most Internet companies. In the first quarter of the year, online ad revenue rose 38 percent to $3.9 billion, according to the Interactive Advertising Bureau. In 2005, revenues swelled 30 percent over the previous year to $12.5 billion.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Can Low Code Measure Up to Tomorrow's Programming Demands?
Joao-Pierre S. Ruth, Senior Writer,  11/16/2020
Register for InformationWeek Newsletters
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll