Bad News For Yahoo; Healthy Traffic Due To Panic And Steep Revenue Decline

When news came out that Yahoo had suffered the biggest data breach in internet history back in 2014 and the more recent debacle involving invading user privacy while working for the U.S. government, the online site could only brace for the worst. Amazingly, however, Yahoo is reporting that traffic is actually holding steady over the following weeks. CEO Marissa Mayer was apparently heartened by this development, which analysts are saying could be induced by sheer panic on the part of users.

While still suffering the effects of the damages that its reputation has endured over the last several weeks, Yahoo is choosing to focus on whatever silver lining it can find, The Wall Street Journal reports. The most convenient sliver of hope on hand includes the supposed proof of customer loyalty thanks to a slight uptick in email usage and the increase in profit for Q3.

During the latest quarter, the online company raked in $162.8 million, which Yahoo itself is considering a huge win given the circumstances it finds itself in. Unfortunately, everything else is still a hot mess for the site, with revenue falling by a steep 14% at $857.7 million. According to what sources told the WSJ, however, it would seem Verizon is still happy with the surprising profit performance.

As for the increase in user numbers, Business Insider was quick to pop Yahoo’s bubble by pointing out it’s potentially due to the reaction on the leaked login details. Simply looking at a few weeks’ worth of data is reportedly providing skewed conclusions because users could simply be trying to make sure that their own accounts are still safe.

The data on increased reading, writing or forwarding of messages could also be attributed to users sending important emails to other, more secure email services by other providers. Looking at the numbers this way certainly paints a terrible picture for Yahoo since it’s potentially a sign of a slow mass exodus in the coming months.