Yahoo! sees the third quarter as looking soft
Yahoo! sent Internet stocks into free fall Tuesday when it warned that its third quarter is looking soft. The news comes just two months after Yahoo! disappointed Wall Street with a soft second-quarter report and delays in a project aimed at bolstering its search technology. Shares in the company are down 35% this year, as Yahoo! struggles to win back investors discouraged by the company’s search-market share losses at the hands of Google.
Finance chief Sue Decker told investors at the Goldman Sachs Communacopia conference late Tuesday morning that the company expects third-quarter numbers to be in the bottom half of the range Yahoo! provided last quarter. The company cited weakness in financial and auto advertising — areas to which it is particularly exposed, observers say. Back in July, Yahoo! forecast third-quarter revenue of $1.12 billion to $1.23 billion. That projection was itself a disappointment to investors, who sold the stock heavily the next day. The Thomson Financial revenue consensus estimate has fallen to $1.18 billion from $1.20 billion in the intervening two months.
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