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Twice this year, Yahoo has announced big warnings. And the latest came today – with the stock down 11% to $25.51. The bad news even took Nasdaq down a notch.
Yahoo's CEO, Terry Semel, said that there has been weakness in ad revenues from autos and finance.
While the online ad market has been growing at a rapid clip over the years, it can still be volatile. After all, companies like GM and Ford are undergoing wrenching changes. Might they tone down their ad spend?
Or, what about the slowdown in real estate? Keep in mind that some of the biggest spenders for online advertising comes from mortgage lenders.
While Yahoo! has a large base of advertisers, there is still concentration.
The same is probably true with other companies that depend on online advertising, such as Google.
Tom Taulli is the author of various books, including the Complete M&A Handbook an operates InvestorOffering.com.
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Reader Comments (Page 1 of 1)
9-19-2006 @ 3:55PM
kevin leo said...
This is an election season. Mr. Semel is doing his part to tank the market for the Democrats. Just as certain oil traders are trying ramp up oil futures to drive negative sentiment for the GOP in November. Watch for the Ol' Heating Oil Crisis coming soon to you via the Drive By Media. YHOO is too smart to have screwed up twice in one year.