Yahoo pinned its hopes on Marissa Mayer, the longtime Google executive that it hired as CEO. The move was welcomed by investors and analysts, with the company’s stock almost doubling last year, as they were counting on Mayer to return the company to profitability. In 2013, Yahoo made a number of big and small acquisitions, it also revamped few of its services as well as changed its logo. Despite all of that, Yahoo 4Q earnings make it the company’s fourth consecutive quarter with diminishing revenue.
This has prompted several analysts to cut price targets on Yahoo stock, which dipped following the earnings announcement by as much as 7 percent. Yahoo blames declining online advertising prices as well as slow growth in Alibaba as root causes of eroding revenue, Yahoo holds a big stake in Chinese ecommerce juggernaut Alibaba. In the last three months of 2013, Yahoo’s overall revenue dipped 6 percent, coming in at just $1.266 billion. The roll out of a new ad format saw strong volumes, but due to the shift on mobile, pricing was lower, which resulted in revenue decline, despite the fact that Yahoo was found to be the most popular internet property in the U.S. last quarter, even beating out Google in the process.