It appears that showing up on CNBC wearing only your boxers, which Beyond.com’s (Nasdaq: BYND) Mark Breier once did, is not an advisable way to boost your company’s stock price. As part of a major restructuring announced on Wednesday, Breier resigned as president and CEO of the online software retailer. Shares of Beyond.com climbed 9/16 to 8-1/2 after the news.
It was clear to many that something had to be done at Beyond.com, because the company’s stock is trading near its 52-week low, revenues are not meeting expectations, and the company is losing money fast. Beyond.com is taking drastic action, laying off about 75 workers, consolidating its offices and attempting to transform itself from a business-to-consumer (B2C) to a business-to-business (B2B) company.
The recent decline in Beyond.com, like the recent meltdown at Value America, is proof that investors now have less patience with companies that are failing to execute their business strategy while losing millions. Beyond.com still has a lot of work to do as it tries to refocus on business-to-business. Even though the company announced an alliance with Red Hat on Tuesday, it might be wisest for investors to stay on the sidelines for now.