However, Netflix deserves some credit.
When the business imploded and the stock crashed, it halted the repurchase program. And Hastings cut back his option exercising.
Zynga, another growth company (or at least that's the plan), announced Wednesday that its board authorized the repurchase of up to $200 million worth of stock,
as posted on its Web site
. On Wednesday's earnings conference call, the company's CFO noted he was uncertain if Zynga would end the year free cash flow positive.
You could argue that it makes sense to buy back shares with your stock so low. Plus, Zynga is flush with cash.
That argument doesn't wash.
Given its uncertain business and it's horrible history of acquisitions (it took a nearly $100 million charge this past quarter related to its purchase of
), Zynga has the potential to burn cash quickly.
At day's end, Zynga needs another hit game. And then another. And then another. And then another.
Pincus needs to turn this company around. I've never questioned his ability as a visionary. If anybody can vision, it's him.
That said, he's not fit to be CEO.
Instead of buybacks and spewing talking points on conference calls (he sidestepped
the million dollar Facebook (
) question), Pincus should focus on one thing for the time being -- making himself "Chief Strategy Officer" like Tim Westergren is at
(P - Get Report)
and naming a CEO who can handle the gig.
At the very least, he should do what Hastings should have done long ago -- bring in a strong COO. Somebody like Sheryl Sandberg who makes more than a token contribution at Facebook. She helps Zuckerberg run the show.
Counterintuitively, if you compare the three -- Zuck, Pincus and Hastings -- the youngest CEO appears to require the least assistance. Maybe the COO has something to do with that.
At the time of publication, the author was long FB and P