So everyone but Congress is lovey-dovey with Yahoo now that it beat third-quarter earnings expectations, right? Not so fast. Wall Street analysts still have their doubts, PaidContent reports. Bernstein analyst Jeff Lindsay doesn't expect ad revenue gains to carry over into the fourth quarter. He also doesn't believe Panama's improvements to search marketing will continue to grow quite so fast. Deutsche Bank, RBC Capital and American Technology Research weighed in too.
Deutsche Bank analyst Jeetil Patel told clients, "One quarter does not make a trend." He's also disappointed Yahoo didn't adjust its expectations for the last few months of 2007, even after acquiring BlueLithium, an online-advertising startup, and Zimbra, a Web-based software company.
Rob Sanderson, an analyst with American Technology Research, said he's waiting for Yahoo to do more with the Right Media Exchange, as Yahoo president Sue Decker has been promising since Yahoo acquired the company in the spring.
Jordan Rohan, analyst with RBC Capital, was more optimistic. "We think the worst is behind Yahoo for now."