Bloomberg reports that Yahoo’s profit is up and–this is the key to the stock news–they “exceeded expectations” (am I the only person who wonders where Wall Street gets those expectations we keep hearing about in the financial news?):
Yahoo! Inc., owner of the No. 2 U.S. search engine, reported an increase in third-quarter profit after cutting costs by paring jobs and jettisoning businesses. The shares rose 4.8 percent in extended trading.
The only time I went to Yahoo in the past year was to look at it for a post I wrote here a little while ago.
A close reading of the story indicates that Yahoo’s financial performance seems to have more to do with cutting expenses than it does with improving the product. It looks to me that this has a lot to do with numbers and not much to do with Yahoo’s product which is, behind all the web portal stuff, a search engine.
Here’s another gem from the same article:
Yahoo’s U.S. search-market share fell to 18.8 percent in September from 20.1 percent in May, according to ComScore Inc.Microsoft, which unveiled Bing in June, rose to 9.4 percent from 8 percent. Google maintained its dominance with 64.9 percent of the market in September, compared with 65 percent in May.
It looks like Bing! and Yahoo are fighting it out for Number Two. And Bing doesn’t have to worry about Wall Street’s “expectations.” Microsoft has deep pockets.