Google increased their hold on search market from 70.5% to 76.6% and performed almost outstanding compared to their fiscal growth target and previous year results. On other hand Yahoo is giving up to compete with Google and analyst have suggested that they are outsourcing the search part to third parties.

Yahoo is struggling for the search market. Yahoo company growth is not as expected. In recent conference for fourth quarter result Yahoo chief announced their employee lay off. Company is planning to lay off around 1000 employees which is around 7% of total Yahoo workforce. This suggest much about current company performance. (Photo by John)

New Yahoo chief Jerry yang said, “This is a necessary next step in our transformation,” Though Yahoo reported fourth quarter profit of $206 million with increasing revenue by 14% to $1.4 billion. Display advertising revenue is continuing to grow by around 20% and company focusing more on display advertising network.

Yahoo online search share fall from 24.1% to 17.9%, which is almost 25% fall compared to previous year. Google captures major part of this search share.

For the year 2008 in spite of headwind in the beginning company is expecting double-digit cash flow growth this year. Display advertising and search integration is final hope for Yahoo.

Company stock also fall to lowest price of $18.58, which is almost 40% low than 52 weeks high price $34.

What this mean for company future?