Yahoo, Still Stuck In Neutral

Yahoo has seen CEOs come and go. It’s seen new logos, new marketing, and new products launched. But there’s been one constant through the years — its revenue just barely moves.

Since 2009, Yahoo revenue has been in a long slow decline. It seems like it’s finally stabilised.

This chart, from this quarter’s Yahoo earnings, show that revenue was up 1% on a year-over-year basis. We suppose that’s better than being down, but almost two years into Marissa Mayer’s run as Yahoo CEO it’s not much growth.

Yahoo’s stock is flying in after-hours trading because it reported that Alibaba’s revenue was up 66% on a year-over-year basis. Yahoo is a holding company for Alibaba right now. Eventually, Alibaba is going to IPO. Yahoo is going to sell its shares. And at that point, Yahoo will have to fix this chart, or its shares will tank.

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