Yahoo!'s Pomp Without Circumstance: What Wall Street Is Thinking (Update 1)

Updated from 8:13 a.m. EST to include comments from Pacific Crest.

NEW YORK (TheStreet) -- Yahoo!'s (YHOO) fourth-quarter results showed the Internet company's business isn't getting any better, and it doesn't look like it's going to anytime soon.

Yahoo! noted display revenue fell 6% from last year to $491 million. The number of ads rose 3% year over year but prices continued to decline, falling 7% from the fourth quarter of 2012. Search continued to be the better operating segment, as revenue excluding traffic acquisition costs (TAC), rose 8% to $461 million. Paid clicks, excluding Korea, rose 17% year over year, but the price-per-click fell 3% from the fourth quarter of 2012.

Yahoo! earned 46 cents a share, as the company sold $70 million worth of assets, benefiting earnings by 5 cents a share. For the quarter, Yahoo! generated $1.2 billion in revenue, ex-TAC. Analysts surveyed by Thomson Reuters were expecting Yahoo! to earn 38 cents a share on $1.2 billion in revenue.

For the first quarter, Yahoo! expects revenue to be between $1.06 billion and $1.1 billion, with adjusted EBITDA between $290 million and $330 million.


WATCH: Jim Cramer says Yahoo! Doesn't Have the Best Technology

Shares of Yahoo! enjoyed a significant run over 2013, as the company's Asian assets, Yahoo! Japan and Alibaba, performed much better than the Sunnyvale, Calif.-based company. However, earnings from equity interests fell to $222 million in the fourth quarter, down from $233 million in the third quarter. Despite the blip, Alibaba, which is set to go public later this year, saw revenue rise 51% year over year to $1.78 billion. Yahoo! owns 24% of Alibaba and 35% of Yahoo! Japan.

Yahoo! dipped lower in premarket trading Wednesday, losing 4.2% to $36.61.

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