Tomahawk, WI 10/24/2014 (Basicsmedia) – Yahoo! Inc. (NASDAQ:YHOO) CEO, Marissa Mayer, has been under immense criticism in the recent past as analysts and investors maintain the company has underperformed under her tenure. The Coca-Cola Company (NYSE:KO) CEO, Muhtar Kent, on the other hand, has succeeded in hiding from the prying eyes of analysts as he is backed by Warren Buffet. CNBC’s Jim Cramer believes Mayer has performed incredibly well considering she took over a company that was a total mess amidst increased competition in the space.
Yahoo and The Coca-Cola Company (NYSE:KO) remain revenue challenged in their respective industries with sales growing by a mere 1%. Cramer believes Mayer is doing all that is needed to revitalize the company’s fortunes starting with a change in strategy for social and mobile exposure while also paying attention to the declining ads business.
“When she was appointed CEO of Yahoo! Inc. (NASDAQ:YHOO) in July of 2012 this stock was at $15, now it is at $42. In other words Mayer has given you a spectacular 180% gain in little more than two years to me, Impressive,” said Mr. Cramer.
The Coca-Cola Company (NYSE:KO) on the other hand has been a disappointment according to Cramer as it was trading at the $39 mark when Mayer took over at Yahoo! Inc. (NASDAQ:YHOO). Coca-Cola is now trading at the $40 mark an insignificant increase compared to yahoo. Coca-Cola underperformance in terms of sales according Kent has been necessitated by harsh economic times, macro factors and challenged consumers, something that Cramer does not agree with.
Cramer argues Kent should not defend Coca-Cola Performance by stating that business has been affected by challenged consumers as Apple Inc. (NASDAQ:AAPL) succeeded in selling one of the most expensive smartphones at the current market conditions.
“You want someone’s head go for Muhtar Kent at The Coca-Cola Company (NYSE:KO), not Marissa Mayer at Yahoo! Inc. (NASDAQ:YHOO). Kent is an endless excuse maker who blames the economy for his company’s woes but Mayer has never taken her eye out of the ball, and she has made you a fortune in the process. I say well done Mayer, and when it comes to beverages no Coke PepsiCo,” said Mr. Cramer.
Coca-Cola’s beverage business has been on a downward trend with the only hope remaining on its investments on Monster Beverage Corp (NASDAQ:MNST), which Cramer believes could be a game a change in the future.
Mayer has been criticized for spending heavily on acquisitions that have not lived to expectations in terms of returns. Cramer came to her defense arguing that a repurchase of the company’s 293 million stock for $26.37 a share was one of the boldest moves as the company is now trading at the $42 mark.