Yahoo CEO Scott Thompson is expected to elaborate on his turnaround plans when the beleaguered internet company releases its first-quarter results.
What to watch for
The report, scheduled to be released after the stock market closes Tuesday, is expected to show Yahoo Inc remains in a malaise that has been hobbling its stock for years.
Unless there is a big surprise in the first-quarter numbers, investors are more likely to be focused on what Thompson says during a conference call that will be held shortly after the report comes out.
Thompson has promised to use the call as a forum for explaining his vision after laying off 2,000 employees, or about 14 percent of Yahoo's workforce, earlier this month. Most investors seemed to believe the cuts were long overdue, but now they want to know how Thompson intends to revive Yahoo's revenue growth with fewer resources.
Figuring out how to snap Yahoo out of its financial funk is a problem that three other CEOs haven't been able to figure out during the past five years. Yahoo lured Thompson away from eBay Inc's PayPal payment service three months ago in hopes that he would come up with a better plan.
Thompson has offered few concrete details so far. He has made it clear that Yahoo needs to do a better job of analyzing the data that the company collects about its website's 700 million monthly visitors so it can sell more advertising. He also believes Yahoo needs to focus on improving its mobile services as people increasingly surf the Web on smartphones and tablet computers instead of desktop and laptop computers.
In an effort to spur more rapid innovation, Thompson is streamlining Yahoo's management to minimize bureaucracy. He also is trying to sharpen the company's focus on his top priorities, a process that may lead to the sale of some Yahoo services. Thompson already has begun disposing of a Yahoo division that helps place ads around the Web.
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