Marissa Mayer must be a genius. In just over a year here’s how the stock price of Yahoo Inc! has performed.
What’s more impressive, is that she’s achieved that without practically doing ANYTHING!
Sure, she handed out some cool new phones to employees, ensures they are fed well and drink better coffee and …. lets not forget the UP Fitness Band she handed to 11,000 employees to measure their body movements. Respect ! No wonder the stock price is sky rocketing … makes perfect sense.
And of course she splashed a billion dollars on a company with barely any revenue on the false premise that she will retain some of their talent (did it occur to her that they are now rich enough to buy their own lunch and great coffee?)
Erm. What about products that people ACTUALLY want to use ? Yahoo! hasn’t launched a product that anyone would want to use in over 6 years. In fact they’ve been great at destroying great products like Flickr. Which makes the Tumbler acquisition all the more interesting. I can’t want to see how they will screw this one up too.
And worse of all they still remain in as much of an identity crisis as they have been for near a decade. I haven’t heard one attempt to even define what Yahoo! really wants to be. What is their goal? Other than splashing money on acquisitions, wrist bands and free food and coffee.
And yet the stock is rocketing. This is just a prefect example of how imperfect financial markets are. Correction: how idiotic they are. A new CEO comes into office and on over a year launches nothing, and fails to define a strategy. Yet a bunch of freebies and nonsensical acquisitions (of companies that don’t make money) shoot the price up.
I can’t wait to be a public company !