Yahoo Misses Revenue, Guides Lower, Stock Drops

Is the "hip" Marissa Mayer's honeymoon with Wall Street finally over? After getting the vast benefit of the doubt from Wall Street for some 50%+ upside in the stock price without generating any actual results, moments ago the search engine that everyone used over a decade ago before the arrival of such better alternatives as GOOG, once again failed to deliver. Specifically, while the company beat the EPS estimate of $0.30 with eash and a print of $0.35, it was the top line that the firm posted a miss, revenue coming at $1.07 billion on expectations of $1.08 billion. But it was the outlook that really impacted the stock, which initially was trading higher only to turn lower as the company's guidance cut was released. To wit:

  • YAHOO SEES 2013 ADJ OPER INCOME $900M-$1B, SAW $1.05B-$1.1B
  • YAHOO SEES 3Q REVENUE EX TAC $1.06B-$1.10B, EST. $1.12B
  • YAHOO SEES YR REV. EX-TAC $4.45B-$4.55B, EST. $4.54B

And while the traditional deus ex of a share buyback was used to confused the GETCO algos as usual, this time to the tune of $1.9 billion, it appears it was no longer sufficient to make the market forget that YHOO is the perpetual "promise" stock that just somehow never manages to deliver.

The only good news here, perhaps, is that as more and more realize that YHOO is YHOO, i.e.,a dying brand no matter how many color in her hair the CEO has, the NSA is likely not spying on (what little) users YHOO has left. That would appear like a selling point to us...


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