This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Marissa Mayer's Star Is Dimming

Mayer asserted that Yahoo! is best positioned in the industry because it is able to partner with other heavyweights such as Apple (AAPL), Google (GOOG), Facebook (FB) and Microsoft. "Partnerships is a huge differentiator for Yahoo!," Mayer said on the call. "We want to put our users first and make their daily routines truly delightful."

It's nice to have these partnerships, but eventually, Yahoo! has to see something out of them, aside from just getting the company's name out there. Mayer was asked about the weather app on Apple's iOS and if there was anything more to be done with that, and she pointed to the fact that the Ybing (the little oval on the left hand side of the app that is Yahoo!'s logo) is helping people familiarize themselves with Yahoo!'s offerings.

Yahoo! has over 700 million monthly users. By now, you would think they know what Yahoo! has to offer.


Outside of Yahoo!'s valuable Asian assets, (its 24% stake in Alibaba and 35% stake in Yahoo! Japan), core Yahoo! (search and display) has been stagnant, but Mayer is working to change that. The company is no longer the laughing stock of Silicon Valley and has been able to acquire and retain some top engineering talent.

Her plan is going to take some time to come to fruition, as second-quarter guidance was weaker than estimates. Excluding TAC, revenue is expected to be between $1.06 billion and $1.09 billion. Analysts polled by Thomson Reuters are looking for $1.12 billion in sales.

We got a little sneak peek of her plan as she said she expects Yahoo! to update its products and announce new ones faster than it had previously. "So in terms of the next sprint, this is really the fun part," Mayer said on the call. "So I really think what you're going to see is that Yahoo!'s products will be releasing with small changes much more frequently and there'll even be what I would call version update, much more frequently, particularly on mobile and on the Web site."

Credit Suisse analyst Stephen Ju, who rates shares "neutral," noted that Yahoo! "remains a work in progress," as Mayer continues to share her vision, albeit a broad one for turning the company around. "Similar to prior quarters' reports, CEO Marissa Mayer outlined a broad strategy with focus on mobile, personalization as well as the re-imagining of its search and display businesses, although a specific product roadmap was not yet delineated," Ju wrote in his note. "As such we remain in a wait-and-see mode pending further signals of a meaningful turnaround."

The honeymoon period for Mayer is over as she comes up on her one-year anniversary at the helm of Yahoo! She has changed the perception of the company, raised the stock price and given investors hope. Now it's up to her and her team to execute on the plan, however broad it is.

--Written by Chris Ciaccia in New York

>Contact by Email.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs