Yahoo shares have climbed more than 5% over the last month, but there's still no reason to be a buyer as the Internet company continues to face a handful of problems, said Colin Gillis, senior tech analyst at BGC Financial.
"We`re going to be in a declining-revenue environment in the September to December quarter," Gillis told CNBC. "We've been saying this trade is stuck in a trading range until 2012-[Yahoo] has got to get this search deal with Microsoft sorted out."
Microsoft and Yahoo agreed to a 10-year search deal in 2009 to better compete against market leaderGoogle, but stopped short of combining their display advertising businesses.
Meanwhile, Gillis has a "hold" rating on Yahoo stock, saying that he expects the firm to "grind sideways" for the rest of the year. He also added that the company`s display revenue growth remains under pressure.
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