Yahoo! Inc. (YHOO)’s Dead Cat Bounce Or A Proof Of Brinkmanship?

Warren Buffett’s quote “Only when the tide goes out do you discover who’s been swimming naked” describes neatly the current situation at Yahoo! Inc. (NASDAQ:YHOO). The company’s share price is up by only 1.41% year to date including today’s spike of approximately 1.21%, to a value of about $41.03. No wonder, there are numerous questions addressing Marissa Mayer’s ability to get the company back on tracks, FOX tried to clear things up a bit.

Most probably a big part of the fuss, if not all, would have been silenced if Yahoo! Inc. (NASDAQ:YHOO) were doing better or showing at least some form of improvement. And controversial as it seems, one person cannot take full charge of the blame for the company’s deeds. However, it’s difficult not to give up to the temptation as there’s actually few progress that can be seen through statistics.

“[…] as a CEO of Yahoo, we’ve seen their net operating income has been flat, their revenues have been declining since 2008. She hasn’t really done that much in turnaround this year other than make these acquisitions,” said Hitha Prabhakar, retail analyst.

It’s true that Marissa Mayer tried to enlarge the market share of Yahoo! Inc. (NASDAQ:YHOO) through the $1.1 billion purchase of Tumblr, which did not improve financial numbers by the amount expected. Then there were all sorts of small companies to follow down the list, some of which are Cloud Party, SPARQ, Incredible Labs, Luminate, Bookpad and many others with values in the range of double-digit millions. This tech amalgam combines a diversity of utilities and services that Yahoo! Inc. (NASDAQ:YHOO) integrated.

Sadly, progress has been seen only in peripheral areas of the tech dwarf’s business activities while its core search engine has been in constant decline. Some point to the fact that Yahoo! Inc. (NASDAQ:YHOO) fails to monetize its services to the customers it already has, which’s number is growing sharply in the mobile niche.

 

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