Looks like the wonder trip that Yahoo's shares has been on since Marissa Meyer was appointed as CEO last July, might be over. After a 50% rise, Yahoo shares fell 4% in after hours trading as they reported a 11% decline in display ad revenues. A 6% rise in search ad revenues failed to compensate. Revenues of $1.07b in Q1 were flat YOY.
As I have reported (see Keep it short), Yahoo is rumoured to be in talks with Apple about a closer collaboration. Bluntly, these results demonstrate that some kind of new initiative for Yahoo is desirable. Yahoo’s content is pretty good and of increasing value. They just need the right platforms to bring this to an even bigger audience. Apple could provide that.
Note - Richard Holway is a longterm Yahoo and Apple shareholder.