Vishesh Kumar
Terry Semel may finally be out as Yahoo!'s(YHOO Quote - Cramer on YHOO - Stock Picks) CEO. But legitimate concerns about the company's prospects are, for now, here to stay.
Shares of the Internet giant, which closed Monday at $26.70, have dropped almost 15% since the company announced first-quarter earnings in April. That's despite an almost-7% rise in the broader Nasdaq index over the same time period. The slump wasn't helped when Yahoo! said in June that the company's second-quarter results, which will be announced after Tuesday's close, would come in toward the lower end of its guidance. For the quarter, analysts surveyed by Thomson Financial/First Call expect the company to earn 11 cents a share on revenue of $1.24 billion. For the year, Yahoo! is expected to earn 50 cents on revenue of $5.18 billion. Yahoo! is hoping that dumping Semel and appointing founder Jerry Yang to the CEO spot will help the company change its fortunes. But some of that faith is based on key elements that already face an uphill battle. Last week, Yahoo! closed its $680 million acquisition of the 80% of online ad firm Right Media that it didn't already own. Right Media is supposed to help boost Yahoo!'s position in the display ad market, one of the few remaining areas in which the company remains in the lead. To watch Vishesh Kumar's video take of his column, click here.
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