Internet giant Yahoo reported a drastic shares increase of 7.41 percent after experiencing slumping revenue for the past couple of months.
Meanwhile, some analysts remain pessimistic as the share increase is predicted to be temporary as the company will face gloomy forecast for the following months ahead.
Just recently, the Internet giant reported its net loss of nearly $303 million after major advertisers pulled out, investments weakened and massive layoffs were implemented, forcing co-founder Jerry Yang to resign from his CEO position.
In 2008, Yahoo reported its $424 million profit, a dramatic decline from $660 million compared to previous year. In terms of sales, its $1.83 billion a year ago slumped to nearly $1.8 billion or a 1 percent decline.
Despite gloomy forecasts and weakened sales, Yahoo CEO Carol Bartz said during a conference that the Internet giant is not for sale amidst speculations that rival Microsoft is planning to acquire Yahoo.
Meanwhile, the company’s per-share profit settled at 17¢ from 13¢ last year, surpassing Wall Street forecast that share will only settle around 12¢.
One major reason of Yahoo’s slumping sales is the low online advertising. As businesses are reeling from the impact of economic recession, companies have resorted to various measures to trim costs and one of these is by pulling out advertisement activities.
According to a report released by Yahoo on Monday, its share rose by 2 percent to 11.334 per share, far below Microsoft’s offer to acquire the company for $33 per share in 2008.
Another reason of Yahoo’s slumping sales is that rival Google is becoming more popular among online ad businesses as people prefer to use it as a search engine tool.
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