Kara Swisher

Recent Posts by Kara Swisher

Now That the Core Matters for Yahoo, Here Are the Charts and Numbers to Assess It

proxy

Yesterday, Yahoo turned in what its fans kindly described as a well-at-least-we’re-not-falling-off-the cliff earnings report.

True, true, but it was nothing to be proud of either, with earnings and revenue down in the third quarter, along with a slew of other business deficits. Yahoo CEO Marissa Mayer gamely tried to smooth it all over — a unique talent of hers — in a kind of retro-chic method, by pointing out that Yahoo’s user traffic is back to 2011 levels and that mobile was growing.

Of course, it’s booming everywhere across the Internet, with rivals managing to monetize the explosive growth that Yahoo simply still cannot.

As the New York Times’ Nicole Perlroth aptly wrote in the lede of her piece about the Q3 debacle: “The honeymoon is over … 15 months after she took over, Ms. Mayer has failed to translate Yahoo’s user increase into meaningful revenue growth.”

This is not to say that she will not eventually, especially if she can keep attracting top talent to help her.

But it’s lucky Mayer has the magnificent performance of China’s Alibaba Group as a lifesaver. Yahoo, which owns a big stake in the e-commerce juggernaut, has seen its stock boom in tandem with investor frenzy to get any piece of the Alibaba rocket ship before its expected IPO next year.

Essentially: Buy Yahoo, get Alibaba; or perhaps more simply put, buy Yahoo as a proxy for it.

But why take my word for it? Here’s the Yahoo slides, press release and also a filing on a new agreement with Alibaba to be able to hold onto more of its shares upon the IPO (Yahoo knows a good investment when they see it) to peruse to get a handle on what’s actually going on.

And that is: A still-damaged core business that is struggling mightily to turn around, with a lot of help from Asia and also the mojo provided by Mayer’s own personal halo.

Here’s Yahoo’s own data to look over:

Q313_YHOOEarningsSlides

Yahoo – Yahoo Reports Third Quarter 2013 Results

Form 8-K

(Photo from Mayer’s Tumblr blog, showing new sign at Yahoo’s Sunnyvale HQ with new logo she helped design.)


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— David Pogue on why he’s joining Yahoo