Yahoo Stock Drops With Cloudy Outlook

Healthy earnings couldn't persuade investors company's future is bright

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Peter Kramer / NBC / Getty Images

Yahoo’s earnings beat Wall Street expectations, but shares slipped in after-hours trading on a poor market forecast.

The company posted earnings of 46 cents a share, beating estimates of 38 cents a share for the quarter, as income for the year 2013 was $590 million, up 4% from 2012’s total. But shares dropped after the earnings announcement, which included a forecast net income of between $130 million and $170 million for the current quarter, well below the forecasts.

Yahoo saw a share price drop of about 3 percent by around 4:45 p.m. Tuesday, and the company also announced 6 percent decline in full-year 2013 revenue to $4.68 billion.

The company launched the new Yahoo Mail, Yahoo Finance, and Flickr photo books during the quarter and saw year-over-year traffic increase in 2013, a development CEO Marissa Mayer attributed to a “return on our investments and the acquisitions we’ve made.”

5 comments
GaryDMN
GaryDMN

Yahoo is a victim of Google love, by the press and analysts. In the press today, there are negative stories about Yahoo and Apple, but only the usual fluff about Google's non-existent or yet to be released products. Why is the press not reporting that Google lost a huge patent infringement settlement yesterday that will be measures in billions of dollars and it is only one of many recent loses? Google with a P/E of 30+ is starting to look like a pump and dump. I can't believe there is not  one analysts that has a sell on Google after the big run up in price they have had. Yahoo stands to win big, as the Google castle crumbles.

chokingkojak
chokingkojak

My impression is that Yahoo is getting "dumped" before it gets "pumped" (up) by Wall Street.  My impression is that the same deal is currently going on with Apple's stock.  


In my book, Mayer is "OK"  (a good, forward-moving CEO).   



splash
splash

so is mayer going to be fired next???

GaryDMN
GaryDMN

@chokingkojak- I think you are right, both Yahoo and Apple are victims of Google love by the press and analysts. They may be pumping Google up, for a dump, at the expense of Yahoo and Apple. They could also be blind clueless lemmings, but I'm not naive enough to think there is not big money involved.