The stock of online grocer Peapod (Nasdaq: PPOD) saw a nice spike on Tuesday after the company announced that it has hired Bill Malloy, a top executive at AT&T, as its new president and CEO. Shares of Peapod climbed nearly 19 percent, gaining 1-1/2 to 9-1/2 after the news.
Malloy will join Peapod from AT&T’s $6 billion wireless business, where he is executive vice president of wireless operations. Peapod co-founder Andrew Parkinson will relinquish his president and CEO titles but remain as chairman of the company.
Even after Tuesday’s gain, Peapod could be a bargain e-commerce play to consider. Peapod competitor Webvan is going public soon and is already valued at about $4 billion. By contrast, Peapod is worth $166 million, and the company already serves eight markets compared to Webvan’s one market: The Bay Area.