Boston, MA 08/05/2014 (wallstreetpr) – For the global technology company Yahoo! Inc. (NASDAQ:YHOO), sales are a big problem considering that the company has been witnessing downtrend in its revenue generation in the recent past despite few acquisitions. Though the company’s CEO Marissa Mayer has been praised loftily for changing the face of it, it appears that those, who defended her once, are having second opinion about her ability to lift the sales.
Chang Of Impressions
Though the morale of Yahoo! Inc. (NASDAQ:YHOO) and its employees have improved during the first six-month period of Mayer, analysts’ seem to be revisiting their views on her two-year stint at the helm of the company. She was praised for her actions to change the face of Yahoo! and for focusing on mobile and related app to improve its business, where they were lacking.
However, things appear to be tough for her to convince investors, as well as, analysts on her actions to turn around the company, especially the sales front. For instance, Erick Jackson, founder of Ironfire Capital, was considered as one of the biggest supporters of Marissa Mayer. He has changed his impressions about her currently, CNBC reported.
Speaking to the channel’s ‘Closing Bell’ program on Monday, he said that sales were the biggest problem since it has been witnessing a terminal fall, and it had only turned into worse under her management. He also found fault with the appointment of Henrique DeCastro as COO and Sales head, and termed it as a ‘disastrous move.’
Acquisitions Destroyed Value
The most important factor was the charges that he had made. Jackson charged Yahoo! Inc. (NASDAQ:YHOO) of transferring wealth to venture capitals, and not to the shareholders. He termed her spending on acquisitions worth $2 billion as destroying the value of the shareholders. Once the China-based Alibaba launches its public offer, Yahoo! would make money, and the shareholders are worried that the CEO would waste the money.
Jackson had questioned as to how the next $2 or $3 billion would be better for acquisitions when the $2 billion spent already had not yielded any tangible results for the shareholders.
