Mayer’s Presence Heavier Than Ever at Yahoo! Inc. (YHOO)

Page 1 of 2

Yahoo! (YHOO)They’ve finally found the one.

Yahoo! Inc. (NASDAQ:YHOO) finally found the right CEO for the job. Marissa Mayer, in just six months, has achieved more success than the previous 5 chief executives combined. She’s made acquisitions; she’s boosted morale, and, more importantly, her company reports increasing revenue for the first time in over four years, crushing Wall Street predictions by 30 percent.

The numbers, when released, pushed Yahoo’s stock to a four-year high, capping off a 28% increase in the stock since the Mayer arrived. The CEO notes that a renewed focus towards “people and products” can take credit for the bump. “We are off to a very good start,” she said. “We are making the world’s habits more inspiring and entertaining.

How did she do it?

First, she claims she focused on the people at Yahoo! Inc. (NASDAQ:YHOO). Accustomed to layoffs and cost cuts, Mayer boosted morale by offered things like free cafeteria food and complimentary iPhones and Android devices. In addition, she hired PayPal co-founder Max Levchin to the Yahoo board for an added perspective.

Next, she shifted her focus to services. She completely revamped Yahoo’s email client, changing the way people thought about Yahoo mail. Finally, she redesigned the company’s social photograph sharing site, Flickr, increasing photo uploads by 25%, improvements that Mayer calls just “a hint” of what’s to come.

Yahoo! Inc. (NASDAQ:YHOO) reported fourth quarter profits of $272.3 million, meaning 23 cents per share, which, although down 9% from the same period last year, should be considered as great numbers for a company which struggled in the first half of 2012.

While online search revenue is up, display ad revenue is down, sinking 3% since last quarter. Believe it or not, Yahoo was once the biggest display ad seller in the U.S., holding a 15.5% market share. However, that number declined to a measly 8.4% last year. “More personalized content and increased product innovation will be key to getting us back to the path for display revenue growth,” Mayer said regarding the slump.

In the same period, competitor Google Inc (NASDAQ:GOOG) increased their market share in the field to 41%, or nearly 5 times the share that Yahoo has.

While Mayer’s results are impressive, her job certainly isn’t done yet. Analysts warn investors, telling them to be wary that the remaining work for Mayer “is not easy,” according to BGC Partners analyst Colin Gillis, who notes that Ms. Mayer still has lots to do to position the company for future growth.

The CEO has acknowledged that one of the keys to sustaining that growth will be the company’s mobile strategy: something that is easier for companies like Google who can use their hardware, like tablets and phones, to force their software upon consumers. Google has about 20% more unique users each month than Yahoo does; something that is greatly helped by their tablet and phone products.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!