eBay Inc. (NASDAQ:EBAY) and Yahoo! Inc. (NASDAQ:YHOO) have reported their second-quarter earnings while Google Inc. (NASDAQ:GOOG) is set to post it’s, as of the close of business this week. Yahoo posted its Q2 earnings that fell short of Wall Street estimates with eBay’s profit on the hand improving at the back strong growth in PayPal division.
Estimize CEO, Leigh Drogen, told Fox Business that the second quarter was the only quarter that did not matter for Yahoo! Inc. (NASDAQ:YHOO) as the market shifts its attention to the highly anticipated Alibaba IPO.
“This is going to be the 1st quarter where the actual numbers for Yahoo Don’t really matter for the stock, and Alibaba is going to IPO here very soon,” said Mr. Drogen.
Yahoo! Inc. (NASDAQ:YHOO)’s cash balance should receive a major boost according to Drogen at the back of the Alibaba IPO where the company stands to earn more than the $1 billion that it invested years back.
Yahoo! Inc. (NASDAQ:YHOO)’s second-quarter earnings dropped as the company continues to struggle on display advertising sales. The search engine company reported earnings of $230million or 26 cents a share, down from $331 million reported for the same period a year ago. Analysts were expecting earnings of 39 cents a share.
Yahoo! Inc. (NASDAQ:YHOO)’s Revenue also dropped by 3% on a year to date basis to $1.04 billion and below estimates if $1.084 billion. The company has already acknowledged that it’s online display rates dropped by 24%. Yahoo’s advertising sales slumped as the company continues to face increased competition from Google Inc. (NASDAQ:GOOG) and Facebook Inc. (NASDAQ:FB) which are considered as the Kingpins of the advertising sector.
Strong PayPal growth allowed eBay Inc. (NASDAQ:EBAY) to post a 6% growth in income for the second quarter as payment business continued to offset lower than expected revenue that was hampered’ by a cyber-attack on the company payment system. eBay saw its sales grow by 13% for the quarter to $4.37 billion but fell short of estimates if $4.39 billion.
eBay Inc. (NASDAQ:EBAY) is already trying to fend off competition from its rivals such as Amazon.com, Inc. (NASDAQ:AMZN) as well as trying to attract new customers. PayPal that eBay bought for $1.3 billion gained 4 million new active users during the quarter ending up with a total of 152 million users.
Drogen believes Google Inc. (NASDAQ:GOOG) will report its earnings in line with estimates despite the fact the company’s revenue numbers have come down a lot in the recent past.