Yahoo reports earnings just under estimates, stock drops 6% post market close

Yahoo! Inc. reported results for the first quarter ended March 31, 2007. They reported Operating Income of $169 million on Revenues of $1,672 Million

"We continued to make good progress against the goals we outlined for the company last year and as a result, delivered a solid financial performance for the first quarter," said Terry Semel, chairman and CEO of Yahoo!. "Yahoo! remains committed to delivering both increased value for advertisers and the highest quality content to the majority of the world's Internet population. With this powerful combination, we believe that Yahoo! is well positioned to capture the major growth opportunities we see ahead for the future."

CNBC is reporting, "Yahoo 1st Quarter Earnings Fall to $0.10 a Share — 1 Cent Below Expectations." I guess one penny below is enough to push the stock down nearly 6% in post market trading.

Yahoo is still up this year about ~20% but for the full year it is down.  All of the analysts keep discussing Panama, the new Yahoo ad product/software.

This reminds me of my discussion yesterday about Google. What is Yahoo? Perhaps if Yahoo focused on products first, ads second, they could step back as a leader in the market. Terry says above, "value for advertisers AND … content…", let's flip those and kick some butt. With the possibility of anti-trust issues with Google, this is a great time for Yahoo to show some market dominance. The time may never been this right again in the near-term future.