Yahoo staging a comeback?

It was an Internet pioneer but in recent years Yahoo Inc., has been regarded as an online afterthought.

This week though there are signs that Yahoo (NASDQ: YHOO)is on the brink of a comeback according to some analysts.

Following a year of Marissa Mayer taking the reins, Yahoo second-quarter financial report released yesterday indicate that the company’s recent product launches has boosted net earnings to $331 million up by 46 per cent from $227 million for the same period last year.

The firm’s second-quarter revenues slumped seven per cent to $1.14 billion compared to the same period last year but Patrick Moorhead, analyst for Moor Insights & Strategy said Mayer has changed much in Yahoo internally than now it has a chance of “regaining a lot of ground lost under prior leadership.”

“They aren’t view anymore as a ‘dead company walking,’” he said.

Yahoo is better off today than it was before Mayer’s arrival, according to Brian Blau, analyst for Gartner Research.

He said past troubles of the company have still not be resolved but employees are saying Yahoo has become a “better place to work and has better products in the pipeline.”


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Yahoo has gone through some “unsettling changes,” according to Hadley Reynolds, an analyst for NextERA Research.

He said the change has probably accelerated under Mayer but the controversial Yahoo CEO “gets credit for bringing a stop to the company’s negative churn” and getting the company moving in the right direction once more.

Mayer has been criticized for some of her decision such as calling a stop to Yahoo’s telecommuting program. However, she has managed to get the company to focus on mobile which is an area that is strategic for companies operating in a world overrun by tablets and smart phones.

Almost all of Yahoo’s 16 acquisitions last year were focused on mobile apps and services.

During the first three months of this year, Yahoo’s monthly active mobile users surpassed 300 million. That’s up from 200 million from January this year.

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