The recent revelation by Yahoo CEO Terry Semel that its ad revenue is slowing in automotive and financial sector seems to have sent shockwaves among the investors as the Yahoo! stock crashed 13 percent. The recent comment by CEO, Yahoo!, also indicates towards the sluggishness in the third quarter sales and profit, which is likely to touch a low end. The downward impact was not only restricted to Yahoo’s stock but it later on spiraled out to Google, Amazon and eBay as well.
As a better fact, it is very true that online investment of automotive and financial sector this time has been weakened but in reality these squeezed investment have been compensated by other sectors as they have increased their online investment. Moreover, there is an overall downturn of US economy at the moment and it would certainly affect almost every sector negatively and web is of course no exception.
Therefore, there is no need to panic to jump on any conclusion at the moment since the entire economy is running through tough time and web economy has the potential to adjust with the tune of overall economy.
