Yahoo Spanked By Investors Over Ads

Those weren't warm overtures coming from Wall Street when Yahoo announced gaudy earnings that didn't beat investor analysts, and the biggest problem may come from lagging behind in relevance for contextual advertising.

posted higher revenues and net income in the fourth quarter of 2005 when comparing year over year figures. However, they didn't beat the Street's call for 17 cents per share earnings, only reaching 13 cents per share instead. Investors quickly drove down shares of YHOO in after-hours trading. Yahoo attributed the figures to their costs in gaining a 40 percent stake in China's Alibaba e-commerce company, a $1 billion deal that took place in 2005. CBS News The GotAds? here. Drag this to your Bookmarks. Add to document.write("Del.icio.us") | Yahoo! My Web David Utter is a staff writer for Murdok covering technology and business.