Yahoo Shares Slump As Sales Continue To Slide

Yahoo remains in a bad shape as the tech giant has, once again, announced a drop in their earnings and sales.

Falling behind

Marissa MayerIn the fourth quarter, the sales of Yahoo’s video ads and banner slipped by 6% while it took a 4% decline in its ad sales. Yahoo used to be the leader of web advertising, but has now fallen behind fellow giants Facebook and Google.

The company reported a quarterly profit of $174 million, 8% lower than their figures last year. Yahoo is currently at 46 cents per share, a few notches above the prediction from Thomson Reuters of 38 cents per share.

The shares of Yahoo dipped 5% in the after-hours trading.

‘Encouraged’

Yahoo CEO Marissa Mayer often stated that the company’s rise would not happen overnight, as she improved the company culture and product lineup rather than focus on sales.

Mayer said she was “encouraged” by Yahoo’s quarter and that the growth in traffic they experienced in 2013 was an “early sign of return on our investments.” Nonetheless, the increase in traffic is yet to translate to ad sales.