) chief operating officer, Henrique De Castro has resigned from
his position after serving the company for about fourteen months.
De Castro was hired by Yahoo's high-profile chief executive
officer, Marissa Mayer with the aim of turning around Yahoo's
sagging core advertising business. Prior to this, De Castro
). Marissa Mayer had roped him in for a whopping $58.0 million in
the hope that his expertise would help revive Yahoo's advertising
De Castro was probably fired because he failed to deliver
results. But Yahoo hasn't officially said anything either
regarding the reason for the expulsion, or regarding the identity
of the replacement. But considering the fact that it is a key
position, it should be filled quickly.
Yahoo has recaptured its position as one of the world's
most-visited online properties, but its revenues aren't
responding as yet. Mayer has stepped up investments in key
technologies both on the product side and the technical side, but
investors have been told to be patient about resultant revenues.
Mayer has also overhauled the company's e-mail platform and
acquired more than two dozen companies, including Tumblr Inc. for
more than $1 billion last year. It has hired leading journalists
to bolster news and media content. The departure of the COO at
this juncture could therefore indicate trouble.
Though De Castro's hiring turned out to be a misstep, Mayer will
likely be given more rope as stockholders have made an enormous
amount of money since the time she joined the company. Though
Yahoo managed to be profitable under Mayer, it struggled to
register sales growth.
Currently, Yahoo has a Zacks Rank #4 (Sell).Other better ranked
stocks in the sector include
Interxion Holdings NV
), both with a Zacks Rank # 2 (Buy).
BAIDU INC (BIDU): Free Stock Analysis Report
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YAHOO! INC (YHOO): Free Stock Analysis Report
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