Spekulatius: YHOO's Bright Spots
Full Story: biz.yahoo.com
Yahoo's quarter, though, did have a few bright spots. The company's marketing and listings revenue, which is mostly ads, rose 18% to $1.37 billion.
Much of the increase is from Yahoo's display ad business, as more large companies begin to spend more ad dollars online, Squali says. "Even in a slow environment, we expect their branded advertising to still show roughly a 30% year-over-year growth rate," he said.
Yahoo appears to be angling to increase its display ad business. On Tuesday, the company said it plans to buy AdInterax, which provides rich-media ads to advertisers, for an undisclosed sum. Rich-media advertising includes video and other forms of animation.
Yahoo also said it bought a 20% stake in Right Media, an Internet ad company.
Another positive for Yahoo is that its international revenue rose 29% to $526 million.
The company is making strides in Japan and China. Alibaba, an online auction company in China part-owned by Yahoo, has been beating eBay (NASDAQ:EBAY - News), says Scott Kessler, an analyst for Standard & Poor's equity research services.
"They have been doing very well in Asia, particularly in China, and that's been hurting eBay," he said.
Also, Yahoo said its fee-based revenue last quarter rose 23% to $210 million. Yahoo collects fees from services such as e-mail storage.
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