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Journalist by profession. I have been writing for various publications for seven years. I have also taught for two years. My interests lie in the business sector, and I also like to cover the fashion industry. I analyze, research and write feature pieces and comprehensive stories regarding business.
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  • Marissa Mayer Plays Her Cards Right  0 comments
    Oct 25, 2013 9:48 AM | about stocks: GOOG, YHOO

    Google Inc.'s triumph is remarkable. The expression, 'Just Google It,' could be considered as a part of the English dictionary. However, its biggest competitor, Yahoo! Inc, beat the company by driving unique traffic to its search engines in US.
    Yahoo had outdone Google back in May 2011, and history repeated itself in July 2013. Yahoo received 196.5m unique visitors in the US, while Google had 192.3m. Yahoo's stock price rose up to 3.1% when the news broke into the market. This event raised three questions- is Yahoo going to make a comeback? Will it take over the lion's share as the most efficient search engine? Also, is Marissa Mayer, who was a part of Google Search, Google Email, Google Images etc a major success, the key player behind this?
    Marissa Mayer was one of the first thirty Google employees. Presently, she is the CEO of Yahoo. Her goal involves four basic procedures: "People, then products, then traffic, then revenue."
    She held a conference call during the second quarter of fiscal year 2013. Marissa Mayer announced that her vision is to focus on four essential areas- mobile, display, search and video. Her gameplay revolves around buying talent - buy smaller companies in order to shut them down, and utilize their best talent at Yahoo.
    Mayer's vision was to revamp Yahoo Apps for smartphones. This was done successfully, as in July 2013, requests for Yahoo's mobile search services increased 5% on a sequential basis. Her employment as CEO boosted the confidence of the stakeholders of Yahoo. Her plans were to restructure Yahoo, and she did so. Yahoo's homepage was redesigned, and services like Flickr, Yahoo Mail and Yahoo Weather were revamped. The company's stock price has increased up to 70% since Mayer took over.
    Yahoo has developed in terms of unique visitors and revenues ever since Mayer's employment. Her biggest acquisition is Tumblr, which has an ever-growing mobile user base, and has reached up to $1.1 billion.

    Yahoo earns 74% of its revenues from the US. . In America, ex-TAC revenues in the second quarter of 2013 increased 2% YoY. However, the year-over-year (YoY) growth in gross revenues was 2%, while net revenues (ex-Traffic Acquisition Costs** (NYSE:TAC)) are on the same page. Under Mayer's supervision, ex-TAC revenues for Europe, Middle East and Africa (EMEA), and Asia Pacific regions experienced an 8% YoY decline.
    Marissa Mayer's overall vision is about focusing on mobility and social media, the two key trends that make the digital world go round. Since Yahoo's image has changed under Mayer's positive influence, it can be safely stated that she has brought on board the best talent.
    However, there is a doubt regarding Yahoo's performance in the future. Nevertheless, our analysis suggests that if Marissa Mayer continues to stay firm on her vision, Yahoo could surpass Google as far as unique visitors are concerned. This would result in active advertising, and a boost in revenues. This raises a question- does Google need to up its game?

    Themes: Technology Stocks: GOOG, YHOO
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