Staffing companies who’ve seen once hefty direct hire fees slip away to customers deciding to roll their own using job boards are almost certain to experience some level of schadenfreude at the sight of Monster’s stock crash this last week.
In case you missed it, Monster (MWW) missed its revenue expectations and investors pounced on it, lopping off almost 25% off the stock price and wiping out hundreds of millions of shareholder value.
Ironically, the monster crash happened just as the company was pulling out of an innovation funk that has crippled it over the last five years.
Monster’s recently released 6Sense Power Search feature has been a hit with beta clients, dealing Career Builder a serious blow on the usability front. Its ChinaHR acquisition puts Monster in good stead for premium clients willing to handsomely reward those rare providers able to provide a truly global solution. Its Career Ad Network makes an aggressive play for passive candidates.
Finally, Monster CEO Salvatore Iannuzzi is following a tenacious BRIC strategy including a play in Brazil that should enjoy a long tail of revenues.
Add to that the fact that Monster has been making a profit during the glacial hiring of the recent recession and you have to wonder what was up with the stock crash. The usual bear commentary is that social media sites like LinkedIn, Craiglists and Facebook are going to eat Monster’s lunch and that walled gardens without a strong social play aren’t going to draw in the eyeballs necessary for future sales.
Those factors certainly are in play, but TempWorks clients however know there is a lot more going on than the current social networking frenzy. The reality is that even though Iannuzzi is doing many things right, Monster is still screwed.
With prices dropping precipitously on everything mobile and internet and in between, any entity dependent on connecting people for its multi-billion dollar market cap is on a collision course with history.
Iannuzzi is quoted as saying “At the very time job seekers need the most help finding jobs, the last thing they need is tens of thousands of additional job boards.” But what he forgets is behind many of those so-called job boards is an aggressive, local curator of jobs and candidates that do what Monster can’t do.