Back in the day at UC San Diego, Vishesh Kumar and I would argue philosophy. We met in a class on Phenomenology (Husserl, Heidegger, etc…). He was a fan of Nietzsche and Schopenhauer and an opponent of “rationalism” and “scientism”; I was partial to Ayn Rand, the Enlightenment and free markets. It was endless frustration trying to persuade him that reality was objective, that there was a truth out there for us to discover, rather than subjective, created by the human mind.
So it was a thrill for me when I logged onto TheStreet.com homepage this evening and saw the headline article read: “Yahoo! Outlook on Ads Dims” by Vishesh Kumar (I have saved the headline for posterity here). Following up on the article’s title Vishesh wrote:
Semel warned of reduced expectations in the Net giant’s key display advertising business.
Back in January, on the company’s fourth quarter earnings call, Semel promised that Yahoo! intended to ‘outpace the industry’ in 2007 on display ad growth. But on Tuesday, Semel said the company expects merely to keep pace with rivals.
Summing up Vishesh concludes:
Adding pressure on Yahoo!’s stock is the premium value it continues to fetch in spite of the company’s competitive problems against Google. Yahoo! shares trade at 44 times earnings estimates, a rich multiple indeed for a company whose latest quarter showed single digit revenue growth across the board.
It really is that 6% growth in Yahoo!’s core Marketing Revenue segment (see pg. 6 of 10) that gets to the heart of the matter. For a company formerly delivering 20%, 30% and even 40% growth in that segment it really raises questions about their future.
Vishesh is currently a senior writer at TheStreet.com focusing primarily on the internet. His article archive is available here.
Congratulations Vishesh!!!! What would Professor Wayne Martin think of us now????
UPDATE (Thu 4/19, 2:30pm PST): Vishesh is scheduled to appear on CNBC’s “On The Money” today at 4pm PST to talk about Google’s 1st quarter earnings report. Check it out!
UPDATE (Fri 4/20, 1:00pm PST): You can see the 8 minute video segment with Vishesh on Google earning’s here.