Yahoo declared its first quarter profit on Tuesday. It informed that net income is down due to stock compensation expenses. But by matching Wall Street’s forecast advertising sales rose revenues up by 34 percent. As more businesses have paid to display their ads next to search results it registered a growth of 35% percent in branding and search engine business.
Though not sure about Microsoft who is placed distant third, both Yahoo and Google are enjoying a healthy growth thanks to the demand for online advertising. comScore, a market research company in its latest study says that Yahoo has lost a good chunk of market share to Google in the last year. In response, Yahoo executives have announced that they are developing a new technology to strengthen its advertising search revenue.
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