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

Turns Out Marissa Mayer Was the Wrong Person for the Yahoo! Job

NEW YORK ( TheStreet) -- After Marissa Mayer got the Yahoo! (YHOO - Get Report) job, I supported the move and stood strongly behind her for several reasons.

First, we're about the same age. I like seeing people my age (38) and younger experience great success. It makes me feel good. Plus it drives me to do more.

And it was a breath of fresh air to see Yahoo!'s board do the opposite of companies such as Hewlett-Packard (HPQ - Get Report), Best Buy (BBY - Get Report) and J.C. Penney (JCP - Get Report) by going with the young tech disruptor as CEO over boring, entrenched and/or retread leaders.

Second, I felt like the media gave Mayer a raw deal -- initially -- simply because she is not only a woman, but, at the time of her hiring, a very pregnant one. I don't like pile-ons. I don't like seeing people get picked on, particularly on the basis of their anatomy and such, so I rallied.

Third, I really thought she would do a great job as CEO. And, by some accounts, she has/is.

If the stock market reflects reality, I made the correct call. Since Yahoo! hired Mayer the stock is up roughly 73%. That said, HPQ and BBY are also up approximately 35% and 78% over the same period. JCP is the only laggard in the bunch, off around 32% since mid-summer 2012. But, for as much as people claim it is, the stock market isn't always a trusty forward-looking mechanism. It creates flavors of the month and, often, leaves retail investors holding the bag.

It's not that Yahoo! is in anywhere near as bad shape as BBY and JCP or HPQ. Because they're not. Quite the contrary. It's just that the four companies/stocks have similarities.

Three of them have seen what, I think, will ultimately be ill-advised stock price runs. Investors haven't really taken a critical look at the future prospects for Yahoo!, HP and Best Buy. To that end, throw in JCP and you have the wrong person in place at the top.

On Mayer specifically -- she's attempting to play the role of head media hotshot at Yahoo!. Consider the latest Kara Swisher scoop over at All Things D: Mayer is trying to cook up all sorts of media "synergy" with everybody from Katie Couric to Vogue magazine.
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
BBY $31.41 -2.70%
HPQ $11.70 -3.40%
GOOG $696.50 -0.24%
JCP $9.49 -1.40%
TWX $74.22 -1.50%


Chart of I:DJI
DOW 17,702.21 -188.95 -1.06%
S&P 500 2,058.19 -23.24 -1.12%
NASDAQ 4,759.58 -58.0140 -1.20%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs