Yahoo’s Ad Downturn a Blip, Not a Trend
MENLO PARK, September 20, 2006 (PodTech News) â€” Yahoo, Inc. executives warned investors at a conference yesterday that advertising growth seems to be slowing in some categories. There was a broad selloff of tech stocks on the news, and Yahoo’s stock took a dive of over 10 percent. Yahoo’s CFO Susan Decker told investors at the Goldman Sachs conference that the slowdown in automotive and financial services advertising will likely lead the company to “deliver in bottom half of the range” of its third-quarter estimate. Andrew Frank, a research director at Gartner, Inc., told PodTech’s Catherine Girardeau he thinks the market overreacted.
REPORTER’S NOTES: Financial analysts react: Bambi Francisco of Marketwatch asks if Yahoo’s disappointing news means the fall rally is over. Eric Savitz of Barron’s surveys stock analysts’ takes on the news. And bloggers take stock: A VC says YHOOCH; Jonathan Berr says Yahoo’s bad news could also hurt Google.
â€” Catherine Girardeau