This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

How Yahoo! Has Become the Best 'Has-Been' on the Market

NEW YORK ( TheStreet) -- It's hard to quantify the level of embarrassment, if not the grossly pathetic punch line that has become search giant Yahoo! (YHOO - Get Report). As a recent shareholder, learning that Scott Thompson has been ousted as CEO arrived as another black eye on the company. It seems to me that Yahoo! saw this as a way to address its own lack of credibility -- by getting rid of Thompson who has been battling credibility issues of his own due to an alleged bio that included a college degree that he never received.

Although the company has forced Thompson to fall on the sword hoping that all of this goes away, it only serves as a reminder to investors of the company's own past failures with due diligence. In plain point and fact, the company and its board have now become an absolute disaster. The question now is, what's next?

What this tells Wall Street is that the faith (misguided or otherwise) placed in the company's ability to execute a turnaround has been wasted -- generating even more restlessness from employees and shareholders who saw Thompson's arrival (four months ago) as a way to restore the technology beacon that once graced visitors with its search intelligence.

Ironically, the company has now been entrenched in a search of its own for a CEO -- one that can last longer than counting by months. Remarkably, the person that assumes the post next will bring the company's average to one CEO per year over the past five years -- each failing to live up to promises of "this time will be different."

What makes all of this even more disappointing is the fact that these challenges and distractions have unfolded while rivals in Google (GOOG - Get Report) and Bing by Microsoft (MSFT - Get Report) have dominated the search realm and enjoying increased online advertiser spending -- an area where Facebook's (FB) arrival as a public issue will only serve to further suppress Yahoo!'s ability to recover and magnify its failures to duplicate (if not) pioneer what Facebook has been able to accomplish.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GOOG $694.68 0.53%
MSFT $49.86 -0.08%
YHOO $36.36 -0.63%
AAPL $93.59 -1.30%
FB $117.12 0.33%


Chart of I:DJI
DOW 17,709.85 -120.91 -0.68%
S&P 500 2,064.99 -10.82 -0.52%
NASDAQ 4,777.2430 -28.0480 -0.58%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs