Bartz Out at Yahoo

The market looks to open higher this morning. There’s good news for shareholders of Yahoo ($YHOO). The board has fired CEO Carol Bartz. I’ve never understood the appeal of shares of Yahoo. The numbers are pretty clear—the company isn’t that profitable.

More than four years ago, I told investors that Yahoo was vastly overpriced. In May 2007, when the stock was at $31, I said I wouldn’t touch it for half that. Yesterday, the stock closed at $12.91 and I still don’t like it.

I don’t think Yahoo’s main problem is leadership, though that is an issue. The company was in position to own the Internet ten years ago and they blew it. Their major problem is that they don’t know what business they’re in. I don’t see Yahoo as being special in any way. They’re simply a mediocre media company. That may sound harsh, but there are far worse things to be.

Posted by on September 7th, 2011 at 9:32 am


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