NEW YORK (TheStreet) -- Yahoo!  (YHOO) was falling 6.51% to $35.73 shortly after the market opened on Wednesday. After the market closed Tuesday, Yahoo! reported its fourth-quarter earnings and noted a 1.7% decline in revenue excluding traffic acquisition costs for the period, which aligned with analysts' estimates.

Revenue decreased 5.9% to $1.27 billion. Excluding traffic acquisition costs, revenue fell to $1.2 billion. Analysts polled by Thomson Reuters expected revenue of $1.2 billion.

Yahoo!'s display-ad revenue, which accounts for approximately 40% of the company's total revenue, fell 5.6% to $491 million excluding traffic acquisition costs. Search-ad revenue, on the other hand, rose 8% to $461 million from the same period one year earlier. Profit rose to $348.2 million, or 33 cents a share, from $272.3 million, or 23 cents a share, in the same quarter one year ago. Earnings per share rose to 46 cents from 35 cents excluding stock-based compensation and other expenses. Analysts polled by Thomson Reuters expected EPS of 38 cents a share.

TheStreet Ratings team rates YAHOO INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate YAHOO INC (YHOO) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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