Yahoo Takes a Backseat to Google in Ad Revenue

Yahoo! shares plummet 4 percent as ad revenues take a major hit

It was a bad day on Wall Street for Yahoo.

The on line search engine may have just launched their newly revamped website, but the company's stocks fell 4 percent after investors saw a major decline in ad revenue. Google, however, remains the on line ad revenue leader, as Google's ad revenue rose 3 percent to $5.5 billion in the second quarter.

Yahoo ended their second quarter with 13,000 employees, down 9 percent from 14,300 workers at the same time last year, enabling the company to lower its cash expenses by about 25 percent. Therefore, the company's profit rose 8 percent in the second quarter, but it's the sharp decline in ad revenue that has investors worried.

Revenue for the period slid 13 percent to $1.57 billion, with shares consequentially falling more than 4 percent—dropping 71 cents a share—on Tuesday after the results were released.
All this comes the same day Yahoo unveiled the makeover of their new homepage, meant to recapture some of the buzz it lost to Facebook, MySpace and Twitter.
Copyright AP - Associated Press
Contact Us