Yahoo (Nasdaq:YHOO) is about to release earnings results. Ponder this Bear Case Scenario as you contemplate management comments.
About one-third of Yahoo’s revenues emanate from search, a product offering where the firm has clear disadvantages relative to competitors such as Google. Yahoo has nothing serious going on in this area.
Total audiences are growing but Yahoo is still falling behind other web sites which continue to provide compelling content. News is news. Katie Couric reading it does not help out the news junkie.
Employee turn-over may have stabilized for now. But there are large portions of Yahoo which will be cut-up and cast-off very soon.
George Gutowski writes from a caveat emptor perspective.