Traffic Spikes While Yahoo’s Ad Business Dips
traffic to website

After a failed attempt to turnaround its Ad business in the last quarter, Yahoo company stock plummeted by 7%. Although the firm reported an increase in overall paid clicks and an increase in ads sold, the prices it commanded in both cases dropped.

Yahoo’s saving grace is its lucrative investment in the Alibaba Group that stands at 24%. The company keeps on getting income from this end. However, Alibaba is set to go public during the course of the year.

According to financial reports, Yahoo! raked in $174 million from revenue of $1.26 billion. This was an 8% drop in profit from the previous year. Similarly, it indicated a fall in revenue of 6% resulting in a slide from $533 million to $464 million.

Sales of display ads sold rose by 3%. However, the average price per ad decline by &% in comparison to the previous year. The search business indicated an increase of 17% while price per click dipped from the fourth quarter of 2012.

Despite the mobile business more than doubling in 2013, the revenue streams remained low. The Chief Executive reiterated her commitment to increase revenue while increasing traffic across Yahoo’s properties.

She is of the belief that ad products have the potential to grow revenue on mobile. Further, there is always the possibility of outperforming the competition in this segment.

Yahoo was able to gain over 400 million users on mobile devices in the last quarter featuring growth on video, social, mobile and native of almost 60% over the previous year.

The company is still on a buying spree having acquired Hitpost, Bread Labs, LookFlow and SkyPhrase among others.

The business remains stable while introducing great products to users and laying a firm foundation for revenue growth. The year over year increase is encouraging serving as an indicator of return on investment on the recent acquisitions.

The firm has further repurchased129 million shares in 2013 bringing stocks to a total of $3.3 billion. As such, the future is looking bright for Yahoo and it is only a matter of time before profits begin to reflect positively on the balance sheet.

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