We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alphabet (GOOGL)-Owned Nest CEO Tony Fadell Steps Down
Read MoreHide Full Article
In a surprise announcement last Friday, Alphabet Inc. (GOOGL - Free Report) declared that Tony Fadell, CEO of its home-automation unit Nest, is leaving the company.
He will be replaced by Marwan Fawaz, former executive vice president at Motorola Mobility.
Fawaz has prior experience with Google since he joined Motorola after its acquisition by Google in 2012 to head the company’s home division that developed set top boxes for cable TVs. His LinkedIn profile says that he most recently worked at Sarepta Advisors near Denver, a consulting firm that he co-founded.
Fadell’s Days with Google
Fadell, a former Apple Inc. (AAPL - Free Report) executive, is well known for his contributions in developing the iPhone and iPod. He co-founded Nest in 2011, a company that focused on the development of smart home gadgets.
Google acquired Nest in 2014 for $3.2 billion. But Fadell’s stint under Google was not very exciting. Product releases were said to be slow and the company had to recall a smoke and carbon monoxide detector. Nest employees publically aired their dissatisfaction over Fadell’s management style holding him responsible for product delays, dropping sales and employee departures.
A former product manager at Nest reportedly filed a complaint with the National Labor Relations Board (NLRB) and alleged that he was fired for posting comments against Fadell and that both Google and Nest are trying to block worker’s voices through illegal surveillance.
The employee was reportedly dismissed for alleged breach of Google’s Data Classification Guidelines by posting memes opposing Fadell’s acts on a private Facebook, Inc. group.
Nest has been trying to avoid further information leak after some critical memes were published by Recode that reflect employee dissatisfaction over Fadell’s management style, which they believe to be the source of the company’s recent internal troubles.
The most evident sign of internal unrest was Fadell’s clash with Greg Duffy, co-founder of Dropcam that Nest acquired in 2014 for $555 million. Fadell criticized the quality of Dropcam employees in public and Duffy responded by saying that the decision to sell Dropcam as a mistake.
He wrote in a blog post that he had “extreme differences on management style with the current leadership at Nest, who seem to be fetishizing only the most superfluous and negative traits of their mentors,” referring indirectly to Fadell’s former boss Steve Jobs.
What Analysts Say
To us, it appears that Fadell’s decision to step down is an attempt to save Nest and Google from facing further criticism.
Chief Analyst with Jackdaw Research, Jan Dawson opined that Fadell’s replacement with someone who is more experienced in indirect selling than direct selling, signals Nest’s shift from a retail model to a service model.
At present, Google has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology space are CommVault Systems, Inc. (CVLT - Free Report) and LG Display Co., Ltd. (LPL - Free Report) each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alphabet (GOOGL)-Owned Nest CEO Tony Fadell Steps Down
In a surprise announcement last Friday, Alphabet Inc. (GOOGL - Free Report) declared that Tony Fadell, CEO of its home-automation unit Nest, is leaving the company.
He will be replaced by Marwan Fawaz, former executive vice president at Motorola Mobility.
Fawaz has prior experience with Google since he joined Motorola after its acquisition by Google in 2012 to head the company’s home division that developed set top boxes for cable TVs. His LinkedIn profile says that he most recently worked at Sarepta Advisors near Denver, a consulting firm that he co-founded.
Fadell’s Days with Google
Fadell, a former Apple Inc. (AAPL - Free Report) executive, is well known for his contributions in developing the iPhone and iPod. He co-founded Nest in 2011, a company that focused on the development of smart home gadgets.
Google acquired Nest in 2014 for $3.2 billion. But Fadell’s stint under Google was not very exciting. Product releases were said to be slow and the company had to recall a smoke and carbon monoxide detector. Nest employees publically aired their dissatisfaction over Fadell’s management style holding him responsible for product delays, dropping sales and employee departures.
A former product manager at Nest reportedly filed a complaint with the National Labor Relations Board (NLRB) and alleged that he was fired for posting comments against Fadell and that both Google and Nest are trying to block worker’s voices through illegal surveillance.
The employee was reportedly dismissed for alleged breach of Google’s Data Classification Guidelines by posting memes opposing Fadell’s acts on a private Facebook, Inc. group.
Nest has been trying to avoid further information leak after some critical memes were published by Recode that reflect employee dissatisfaction over Fadell’s management style, which they believe to be the source of the company’s recent internal troubles.
The most evident sign of internal unrest was Fadell’s clash with Greg Duffy, co-founder of Dropcam that Nest acquired in 2014 for $555 million. Fadell criticized the quality of Dropcam employees in public and Duffy responded by saying that the decision to sell Dropcam as a mistake.
He wrote in a blog post that he had “extreme differences on management style with the current leadership at Nest, who seem to be fetishizing only the most superfluous and negative traits of their mentors,” referring indirectly to Fadell’s former boss Steve Jobs.
What Analysts Say
To us, it appears that Fadell’s decision to step down is an attempt to save Nest and Google from facing further criticism.
Chief Analyst with Jackdaw Research, Jan Dawson opined that Fadell’s replacement with someone who is more experienced in indirect selling than direct selling, signals Nest’s shift from a retail model to a service model.
At present, Google has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology space are CommVault Systems, Inc. (CVLT - Free Report) and LG Display Co., Ltd. (LPL - Free Report) each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>