The once on-top-of-the-game search engine Yahoo! is on its way to becoming one of the Internet’s forgotten artifacts. Yahoo! has been overcome by Google in terms of consumer products and the outlook of Yahoo! is not promising.

In fact, according to Market Watch, Jennifer Booton reported that shares of the company fell 2% in the premarket trade, and that there would be “little hope” for Yahoo! to improve in terms of its operations. This drop in shares has been a result of heightened competition in the technological industry as Yahoo! attempts to fight back and regain its name.

Yahoo! Finance

Yahoo! Finance

The threat of Yahoo!’s performance drop has been evident in 2013, despite its 72% rise in the company’s overall share price thanks to its CEO Marissa Mayer. The company has been looking much better in terms of consumer response and the brand has hit a state where it has just become passé.

Perhaps things are not as bleak as they appear; Yahoo! stocks have actually gained some momentum with its acquisition of Chinese e-commerce giant Alibaba, as reported by Gina Hall of the Silicon Valley Business Journal. Revenue was reported at a 32-percent high, which boosted Yahoo!’s overall shares just recently. However, this would not be enough to really boost the growth potential of the company in the bustling cat-fight between companies.

On the bright side, Yahoo! has actually partnered with Google, Inc. in order to lift its dropping shares. This partnership, according to analysts, could help the company combat losses, especially since the company had to lay off employees and close down operations in some countries. Columnist Jayson DeMers of Search Engine Land explained that the Google-Yahoo deal gives Yahoo! the ability to control queries sent to Google, promoting search engine optimization in the long-run.

Is Yahoo! dying? The stocks tell the story, but the company has actually rolled out new services such as a Flickr-powered image search to help consumers of the engine out. Maybe there is some light at the end of the tunnel.


But, will this be enough to help Yahoo!’s overall shares?