SunTrust's Bob Peck Says Pressure At Yahoo Mounting, Notes Report Of Two More Key Executives Leaving - Alibaba Gr Holding (NYSE:BABA)

Shares of Yahoo! Inc. YHOO have lost nearly 35 percent year to date.
Bob Peck of SunTrust Robinson Humphrey commented in a note that "quality executives" continue to leave the company.
Peck added that attracting and maintaining key executives has been "the heart" of CEO Marissa Mayer's turnaround strategy.

Shares of Yahoo have lost nearly 35 percent since the start of 2015 as many investors continue questioning the state of the company and its turnaround successes after more than three years of Marissa Mayer leading the company as CEO. In a report published Monday, Bob Peck of SunTrust Robinson Humphrey discussed

report by Re/code which stated that two key executives announced their intention to leave Yahoo. Jackie Reses, Yahoo's Chief Development Officer and a "close member" of the CEO's cabinet will be leaving the company to go to Square. In addition, Lisa Licht, SVP of Marketing Partnerships will be leaving the company. Peck continued that in total, 12 "key people" have left the company in 2015, an increase from the four people he counted in 2014. The analyst further pointed out that when Yahoo's CEO Marissa Mayer was named CEO over three years ago, the "heart" of her turnaround strategy was attracting quality people. Accordingly, recent executive leaves are "disrupting" her strategy of "people, product, traffic, then revenue." Peck further added that as part of his three year review of Mayer's leadership, Yahoo's turnaround has not only been "challenged," but may be accelerating with executive departures. Finally, Peck argued that with the Alibaba Group Holding Ltd BABA spin expected to finalize shortly, investors are "turning their eyes to the turnaround progress, and CEO Marissa Mayer." The analyst suggested that if the spin is completed, Yahoo's core asset is "vulnerable to a strategic offer" which could result in a leadership change. Peck maintained a Buy rating and $40 price target on shares of Yahoo. Peck also maintained a Buy rating and $100 price target on shares of Alibaba.

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