Yahoo! Will Be Hurt By Online Ad Trend

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By Douglas A. McIntyre Published

Barron’s looks at research from Pacific Crest showing that online ad revenue growth will slow to 25% in Q3. The figure includes both search text ads and display. The firm’s previous forecast was 30% for the period.

Since Yahoo! (YHOO) gets the majority of its advertising from display and that portion of the market is growing more slowly than search, the company faces a challenge to do well this quarter. But, as second blow, Pacific Crest points out "While Panama is working operationally, we believe that the limited search volume relative to Google (GOOG) leaves [advertisers] unmotivated to spend more on Yahoo.”

It would not be surprising to see several brokerages lower their Q3 expectations for Yahoo!.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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