Yahoo!’s Forecast Makes No Sense

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Yahoo! said that fourth quarter revenue excluding traffic acquisition cost was $1.228 billion. Wall St. expected a little least. No surprises here.

Yahoo!’s new ad search systems will be out ahead of schedule, on February 5.

But, if the new product will be out ahead of plan, and its is the solution to Yahoo!’s problems with revenue growth, why is the company’s forecast of 2007 so poor? The company expects Q1 to have revenue as low as $1.12 billion to $1.23 billion (excluding costs for traffic). Wall St. was expecting $1.26 billion. The forecast for the full year is even worse. Revenue of $4.95 billion to $5.45 billion against Wall St. forecasts of $5.47 billion. Revenue for 2006 was $4.56 billion.So, top line growth could be less that 10%.

Goldman Sachs cut Yahoo! to "neutral" from "buy" this morning.

If Panama is such a great move for Yahoo!, why will 2007 be so tough?

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Our $500K AI Portfolio

See us invest in our favorite AI stock ideas for free

Our Investment Portfolio

Continue Reading

Top Gaining Stocks

MU Vol: 26,371,095
COIN Vol: 5,446,913
EBAY Vol: 11,299,499
ORCL Vol: 19,460,093
MRNA Vol: 2,254,189

Top Losing Stocks

UPS Vol: 8,531,359
FDX Vol: 2,278,612
CHRW Vol: 1,615,740
NCLH Vol: 29,032,643