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Maybe Marissa Mayer Can't Save Yahoo, After All

After a 7% revenue dip in the second quarter of 2013, analysts and employees are cutting CEO Marissa Mayer slack—for now.

Maybe Marissa Mayer Can't Save Yahoo, After All

Image: Magnus Hoij

Yahoo CEO Marissa Mayer may have gotten people talking positively about the company again with her high-profile acquisitions, site revamps, and shakeup in the employee culture, but none of this talk has goosed the company's core business, which is advertising.

Yahoo just reported ad revenue down 7% in the second quarter of 2013. Overall market share is projected to decline from 9.2% to 7.9% as Yahoo loses out to rivals like Google and Facebook.

Despite all her high-profile leadership, Yahoo's fate may be out of Mayer's hands. If you read the tea leaves, most of the growth in Yahoo's stock price over the past year comes from the company's stake in the Chinese e-commerce site Alibaba, which is growing fast and headed toward an IPO.