Yahoo reported weak top-line performance as expected, while on a sequential basis, revenues point towards a recovery in advertising budgets. Global economic parameters indicate a recovery in the global economy. The US online advertising market, which experienced a sequential decline, is expected to experience a moderate drop in advertising revenues in FY 2009. Going forward we continue to anticipate a recovery in the global economy by 2H 10, which will improve…

With the current global economic turmoil, advertisers are looking at cutting advertising budgets. Formats such as Search are gaining popularity as they offer a higher level of traceability in terms of results and are more economical when compared to Display advertising. With Yahoo! Inc. (Yahoo) generating approximately 25% of its revenues from Display advertising, we expect the company's near-to-medium term growth to be materially impacted by this phenomenon....