2. Revenue Estimates
Speaking about revenue; analysts were less cheery when Yahoo! Inc. (NASDAQ:YHOO) reported Q2 revenue below expected revenue estimates. Its revenue has been experiencing a downward trend since 2011, but only because Yahoo signed a Search agreement with Microsoft Corporation (NASDAQ:MSFT) and has been reporting revenue differently, as it shares its revenues with Microsoft in evolving markets.
With revenue in 2011 and 2012 trailing the numbers reported in 2010, Yahoo has yet to amaze its investors after spending its money in buying an unprofitable Tumblr and trimming its stake in the Alibaba Group. Meanwhile, although Yahoo has enhanced its display ad technology and format, it is too early to say if expected revenue of $4.45 billion will be met this year.