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Yahoo’s revenue woes

Posted by Michael Bloch in online world (Thursday April 23, 2009 )

Yahoo’s profit has dropped 78% compared to the same period a year earlier; and the axe is about to be swung among its ranks again.

According to AdAge, the display advertising dependent company announced it would slash 5% of its 13,500-person work force over the next several weeks.

Aside from the recession, CEO Carol Bartz, who has been at the company for less than four months, believes the company isn’t easy enough to do business with when it comes to ad buying.

It’s really interesting how much things have changed in the last few years. Yahoo’s announcement really didn’t have the impact on their share prices that I thought it would.

Back in 2006, in my post subtly entitled “Google’s #$#ing shareholders” I was bewildered over the fact that even though Google’s revenues were 86 percent higher than the previous year final quarter and 22 percent more than the third quarter in 05, shareholders spat the dummy and the stock wound up being devalued by 12%.

Could some shareholder sanity be finally prevailing in accepting that things can’t be good all the time? If history is anything to go by, perhaps, but it will likely only be temporary sanity; it’s probably more likely investors just don’t know where else to sink their money.

I can’t say I really understand the stock market; heck, I’m still getting my head around currency exchange markets; but I don’t think I really want to figure out how it all works. It’s enough to know that it’s driven by people who don’t give a tinker’s cuss about anything except their dividends and infinite double digit growth; particularly in regards to online companies. A good company with the aim of an going public is often a corrupted company in the making.

That infinite and unrealistic growth mentality is what brought us to this crisis and it’s going to have to be a mighty long and deep recession before that mentality will change to one that’s based on true sustainability.

As President Obama said yesterday in his Earth Day declaration; “history has shown that as we sow, so too shall we reap”. I fear we still have a lot of sowing of bad seed still left in us.


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