Yahoo Has a Bad Quarter but Project Panama Goes Live

All of that self advertising is hitting the bottom line this quarter.

Net income for the third-quarter dropped to $159 million, or 11 cents
per share, weighed down by $80 million worth of stock-compensation expenses,
compared with the year-earlier quarters profit of $254 million, or 17 cents per
share.

They have to get rid of some of those options expenses or it will be like an anchor on them. However there is one ray of sunshine that the stock sorely needs. They at last got their new Search Technology called Project Panama online.

Yahoo was supposed to unveil Panama in the third quarter but told
analysts in July that it would come out during the fourth quarter
instead.

But during the conference call, Semel said that Panama was now live
and that the company was in the process of shifting advertisers to it over the
next few months.

Boyd said that it was crucial for Yahoo to not postpone the rollout
of this new search technology any further or else many investors would have
given up hope on the company.

Now if if they can buyout Facebook and make it a success they might be a credible threat to Google's Ad Search supremacy.