) announced the redesigning of its website's home page. Although
Yahoo unveiled the new look in the U.S., the rest of the world
have to wait for a few more days to view the new home page.
Yahoo, under its new CEO Marissa Mayer took the decision of
redesigning its home page after 4 years. Yahoo's decision comes
in the wake of its loss of leadership in display advertising to
). The design change is intended to make the page more attractive
to its users so that they spend more time on the page.
As per a report by comScore, Yahoo has been seeing declining
engagement on all of its three major revenue earning portals:
Yahoo Mail, search and the homepage. In November and December
2012, search revenues were down 28% and 24%, respectively while
mail revenues dropped a respective 16% and 12%. Monthly unique
visitors to the home page declined 17% in November but rose 4% in
As per a report by comScore, Google sites in the U.S. alone
have 67% market share followed by Microsoft, which has 16.5%. As
of Jan 2013, Yahoo had 12.1% market share. Thus, Yahoo has a long
way to go to reclaim its lost market share.
Yahoo Mail is also likely to be challenged by the world's
largest software maker,
), which has started Outlook.com, a free email service. Microsoft
will be moving existing Hotmail users to outlook.com along with
their hotmail.com email addresses and passwords.
Yahoo, under its new CEO Marissa Mayer is also beefing up its
mobile business. The company has undertaken a new marketing
strategy according to which it is acquiring struggling start-up
companies. It has concluded four such acquisitions.
Yahoo's recent purchases include Stamped, a mobile review app
maker; OnTheAir, specializing in broadcasting video chats or
interviews to online audiences; Snip.it, which is a kind of
clipping service for the web and Propeld, which is a
location-based apps maker.
Currently, Yahoo has a huge task at hand, which is to bring
back its users and make them spend more time on its properties.
If successful, Yahoo may reclaim some of its lost market share
going forward. This would be crucial to bring back advertisers as
In the third quarter of fiscal 2012, Yahoo generated revenues
of $1.20 billion, which were down 1.3% sequentially and 1.2% year
over year. Traffic acquisition cost (TAC) was down 17.7%
sequentially and 22.2% from last year. Excluding these costs in
all periods, net revenues were essentially flat on a sequential
basis and up 1.6% from last year, in line with the consensus
Yahoo has a Zacks Rank #3 (Hold).
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