The highlight of the Yahoo conference call tonight has come early:
We … [expect] revenue per search to begin to improve in the later part of Q2. We actually see Q1 as probably the trough in revenue for search although we started out pretty strong. So we expect it to trough in Q1 and to start picking up in Q2 with double-digit growth in the back half.
The bulls will be elated, and the bears … distressed.
Why so soon? Because Yahoo says that most of its advertisers are already on Panama, and the impact will be seen by the end of the quarter. That’s earlier, I think, than most people were expecting.
Overall, I like this report, as well as the subsequent call, and I was entertained at how, once again, an errant early headline focusing on something extraneous — option costs — drove trading down before the current rapid recovery.