Internet giant Yahoo! announced after the bell, met analyst expectations with their second-quarter earnings at $164 million. But they disappointed when they postponed the introduction of their new online advertising strategy, erasing investors hopes for faster growth this year. After market close, their announcement dragged down shares of both Google and Baidu.
Yahoo's stock price dropped almost immediately after the second-quarter numbers came out because investors had been hoping the results would beat expectations of $0.11 per share, much like it did last quarter. It only got worse, when during the conference call, Yahoo! stated that the much-anticipated change in its formula for displaying ad links will be delayed by at two or three months.
Google and Baidu are to announce Wednesday and Thursday.