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Yahoo! Inc. (YHOO) And Twitter Inc (TWTR)’s War Is Downright Petty: Kara Swisher

Yahoo! Inc. (NASDAQ:YHOO) might be expected to surpass Twitter Inc (NYSE:TWTR) to grab the number three spot in mobile advertising in 2015, but that is still no reason for Marissa Mayer, Yahoo’s CEO, to celebrate. In a discussion on CNBC, Re/code’s Kara Swisher explained why this battle is so petty.

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“[…] It is small, it matters that it is small. The other two are just sopping up all advertising between them, Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB). Twitter Inc (NYSE:TWTR) really has to perform here because it is a mobile application, it’s not a web application, Yahoo! Inc. (NASDAQ:YHOO) has a stronger web business. I mean again these are just a couple of hundred million dollars, I think Marissa Mayer said  $200 million, which is just a drop in the bucket for that company, so they have got to get these numbers much much higher […],” said Swisher.

On the same note, it was revealed during the discussion the market segments that these companies have under their domain. While Google and Facebook, each control 35% and 17% of online advertisement business, Yahoo! Inc. (NASDAQ:YHOO) and Twitter Inc (NYSE:TWTR) can only manage to grab 3%-4% of the market share.

Despite Yahoo! Inc. (NASDAQ:YHOO)’s recent upgrade from Bank of America and now the news of Yahoo surpassing Twitter for the number three spot mean little in terms of value being added to the company’s operations. Swisher elaborated on this.

“[…] I am still waiting to see a product that is fantastic. I mean I was just talking about it, someone said I haven’t written about it lately, but I don’t mean to say I am bored, but like I want to see an innovative product that otherwise has this asset, you know, it’s improving around the edges like mobile, but it is not enough to move the needle […],” said Swisher.

Twitter Inc (NYSE:TWTR) is currently down a significant 5% today, and is trading at $36 amid news of Daniel Graf of consumer product, leaving the company.

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