SAN FRANCISCO: Yahoo Inc shares reached their highest level in a year and a half, as investor confidence grows that new Chief Executive Marissa Mayer can pull off a comeback that eluded three of her predecessors.
The Internet pioneer has yet to actually provide Wall Street with any hard evidence that its business is turning a corner - and she has warned that it will be a lengthy job - but investor faith in the ex-Google executive is running high.
Yahoo ranks among the world's most popular websites, with roughly 700 million monthly visitors. But the company's revenue has eroded, amid competition from Google and Facebook and an industry-wide change in the online advertising market that has compressed prices for the online display ads that are key to its business.
The company has been rocked by internal turmoil: CEO Carol Bartz was fired over the phone and CEO Scott Thompson left after less than six months on the job due to questions about his academic credentials. Mayer, Google's first female engineer, took the top job at Yahoo in July.
In a conference call with investors last month, Mayer said that making Yahoo's online products more smartphone-friendly was her top priority.
Investors and analysts on Monday dismissed a weekend report in The Telegraph that said Yahoo was in discussions with Facebook about a search deal, particularly after Facebook issued a statement denying any such talks.
More news: The Star Online