Yahoo! – the profits are back!
After Google’s results pleased the markets very much last week, analysts were closely watching Yahoo!’s results on Tuesday, looking to confirm the recovery trend. And although not nearly as stellar as Google, Yahoo! didn’t disappoint either: it managed to beat analysts' expectations and showed that growth in Internet advertising may be on its way back. Yahoo! earned $186 million in the 3rd quarter (big jump on the same period last year) on the gross revenue of $1.58 billion (down 12%). It made more profits from the sale of its stake in Alibaba.com, a huge Chinese commerce site, and from greater efficiency (read: lay-offs). Its display advertising revenue was down 8% and search revenue dropped 19%, but the prices it was charging for ads were up 32% since earlier this year. The higher prices and expectation that the overall online advertising will jump 5.9% in 2010 gave the markets a very warm feeling that recovery is on its way. Read more: BusinessWeek
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