Bearish Ad Outlook Hurts Yahoo! Shares - TheStreet

Bearish Ad Outlook Hurts Yahoo! Shares

The stock slides some 3.5% after the close as CEO Koogle notes consolidation may dampen revenue growth.
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Updated from 6:19 p.m. EDT

Shares of

Yahoo!

(YHOO)

slipped in the after-hours session following some less-than-rosy comments from CEO Tim Koogle at the

Robertson Stephens

Internet Conference in San Francisco.

"There is a period of consolidation under way and it's healthy, as painful as that is," Koogle said of the dot-com space, in response to a question about Yahoo!'s ad outlook. "We've been in it for about nine or 10 months, where companies and capital are getting rationalized. It will take a little of the upside away in the near term."

Analysts have been cautious in their predictions of what Yahoo!'s ad revenues will amount to in the third quarter ending Sept. 30. A

pessimistic research report put out by

Lehman Brothers

analyst Holly Becker hurt Yahoo! shares Aug. 28. And a negative article in

The Wall Street Journal

last Friday knocked it further still.

The company is expected to report revenue of around $280 million for its third quarter, up from $270.1 million in the second quarter. Yahoo!, which traded as low as $104 on

Instinet

, down $8.06 from its regular-session close, recently gained some of that back, trading at $108.