Web portal Yahoo! (Nasdaq: YHOO) fell 2 15/16 to 127 1/2 Tuesday after a Merrill Lynch analyst warned of ongoing struggles in the Internet advertising market.
Merrill Lynch said AOL had been less affected than other e-businesses by online advertising challenges, and predicted continued modest growth in AOL’s advertising revenues.
Headquartered in Santa Clara, California, Yahoo! provides Web navigation services, advertising, and business services to users worldwide.
A report from Internet audience measurement firm Media Metrix on Tuesday placed the company third in the top 50 U.S. Web sites, with America Online (Nasdaq: AOL) retaining its No. 1 spot and Microsoft (Nasdaq: MSFT) at No. 2.