Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Yahoo Inc.’s (YHOO - Analyst Report) 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 worked with Google . Marissa Mayer had roped him in for a whopping $58.0 million in the hope that his expertise would help revive Yahoo’s advertising sales.

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 Baidu (BIDU - Snapshot Report) and Interxion Holdings NV (INXN - Snapshot Report), both with a Zacks Rank # 2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%