After reporting lower than expected revenue and profit numbers, Yahoo watched as Wall Street devalued its stock price by almost 12 percent, reports Reuters.

The drop in stock price came after Yahoo announced profit had fallen by 11 percent in the first quarter of 2007 to just 10 cents a share. Last year Yahoo reported a profit of $159.9 million or 11 cents a share. Yahoo had built up expectations for quarterly numbers based on not only Panama but also the beginnings of their partnership with a consortium of newspaper publishers.

Yahoo chariman and CEO Terry Semel acknowledged the disconnect between expectations for revenue and reality, especially as it relates to their Panama ad platform. Semel said some of the reason for the disappointing results is slow adoption of Panama by advertisers. He stressed, though, that this is just the first step on the road back to success for Yahoo. That hasn't stopped speculation that Semel may not be long in his current post.