Yahoo's 1Q disappoints, but stock rises on Yahoo Japan hopes

Source: AP-Excite

By MICHAEL LIEDTKE

SAN FRANCISCO (AP) — Yahoo is still struggling to boost revenue nearly three years into CEO Marissa Mayer's tenure, magnifying concerns that the Internet company holds little value beyond its lucrative Asian investments.

The latest evidence of Yahoo's financial malaise emerged Tuesday with the release the company's first-quarter earnings report. Mayer and Yahoo's chief financial officer, Ken Goldman, eased investors' disappointment by pledging to cut costs, while indicating that the company may be willing to fulfill Wall Street's desire for a spinoff of its stake in Yahoo Japan.

Investors already had driven down the company's stock by 12 percent so far this year before Tuesday's numbers came out. The shares initially fell by an additional 2 percent in extended trading, but then rebounded after the cost-cutting pledge and the Yahoo Japan remarks. If that happens, it would mirror what Mayer has already started to do with an even more valuable stake in Alibaba Group, an e-commerce star in China.

Yahoo's stock rose 66 cents to $45.15 after Mayer's remarks in a webcast reviewing the financial results.

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FILE - In this Jan. 7, 2014 file photo, Yahoo President and CEO Marissa Mayer speaks during the International Consumer Electronics Show in Las Vegas. Yahoo Inc. on Tuesday, April 21, 2015, reported first-quarter net income of $21.2 million. On a per-share basis, the Sunnyvale, California-based company said it had net income of 2 cents.(AP Photo/Julie Jacobson, File)

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