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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Marissa Mayer Struggles to Give Yahoo! an Identity Beyond Alibaba

NEW YORK (TheStreet) -- No one doubts Marissa Mayer is good at her job. Prior to her being installed as Yahoo!'s (YHOO) CEO, that position was a turnstile of failed promises. But now she is under increasing pressure to come up with a strategy for the company as Alibaba readies its initial public offering.

Mayer's arrival at Yahoo! spurred an immediate recovery. Yahoo! is no longer a laughingstock. As for the stock itself, currently trading around $35.50, you'll be hard pressed to find a stronger turnaround story, even with the shares down 12% for the year to date.

Still, the company is light years ahead of where it was just 12 months ago, up 33%. Since Mayer's arrival, shares have soared 155%.

>>For Yahoo!, Earnings Means More of the Same

>>Why Apple Has Become a 'Bellwether' for 2014

But they won't go much farther without some catalysts. The honeymoon's over. We're approaching Mayer's two-year anniversary. It's time to change the narrative of "Yahoo! will be okay because it owns part of Alibaba."

Sure, by virtue of its 24% stake, Yahoo!'s cash situation will improve once Alibaba files its IPO. But absent a clear and comprehensive strategy, Alibaba alone is not going to drive Yahoo!'s stock.

Mayer has made a lot of moves, including the acquisition of Tumblr. There has also been speculation she is interested in Yelp (YELP). There have been talks about online video and possibly movie and music streaming.

These are markets currently dominated by Google (GOOGL), Netflix (NFLX) and Pandora (P). I'm going to guess you've heard of them.

To her credit, Mayer understands she cannot just sit idle and expect the company to grow. From where I sit, Yahoo!'s ambitions appear too scattered. Not wanting other groundbreaking end-markets like Facebook (FB), YouTube and Twitter (TWTR) to escape her grasp, she's operating with fear.

These are a few of the businesses Yahoo! could have easily dominated had it had someone of Mayer’s caliber and intuitiveness a decade ago. But times are different. Today, her job is to define what Yahoo! should be.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs