Yahoo! Inc. (YHOO) reported yesterday that sales rebounded in the fourth quarter from a dismal third quarter. They also promised investors that they wou
ld try to close the gap between them and the goliath Google (GOOG).
Yahoo's shares rose 5.8 percent, to $28.53, in after-hours trading an increase of the regular trading price of $26.96, according to this NYTimes.com article.
Yahoo investors are awaiting the second phase of the long-delayed search advertising system, Project Panama which will begin on Feb. 5. In a nutshell, the system will display the most profitable ads first. The computer will estimate which ones will make the most money.
Criticism has escalated in regards to the slow, indecisive and unfocused leadership of Terry S. Semel, Yahoo’s chief executive, especially as Yahoo falls further and further behind Google. He made some changes including the appointment of Susan L. Decker to take the helm of the advertising sales ship.
It is time for a change since although Yahoo's users are looking at more pages than they did a year ago, the company's advertising revenue for each page declined due to the delayed search ad technology.
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