The Internet's Biggest Revenue Generators Redux
Page 1 of 1
Back in May, StockTracker Daily listed the 10 biggest revenue generators among Internet companies, based on recent quarterly revenue figures.
With the latest round of earnings reports over and another looming next month, let's look at an expanded list of top 'Net money magnets, along with their market capitalizations through Tuesday's close and their valuations based on trailing 12 months' revenue:
Market Valuation Symbol Company Name RRQ Cap. (mm) TTM CSCO Cisco Systems 5,720.0 387,628.8 20.5x AOL America Online 1,929.0 128,988.2 18.8x AMZN Amazon.com 577.9 14,145.6 6.5x PALM Palm 401.0 31,376.6 25.3x MRCH marchFIRST 380.2 2,365.9 2.7x CMGI CMGI 377.2 8,986.2 10.2x PCLN priceline.com 352.1 3,106.1 3.1x EGRP E*TRADE 330.3 5,042.2 4.4x PSIX PSINet 278.3 1,900.7 2.3x YHOO Yahoo! 270.1 56,272.7 65.8x IDTC IDT 231.3 1,371.3 1.8x BRCM Broadcom 245.2 57,063.5 77.6x ITWO i2 Technologies 242.6 36,479.0 48.6x ELNK EarthLink 230.9 1,280.6 1.3x BUYX BUY.COM 193.2 393.5 0.5x EXDS Exodus 179.6 23,335.5 48.3x AMTD Ameritrade 172.3 2,956.4 5.0x ATHM At Home 148.7 5,531.3 10.5x CTIX Cheap Tickets 128.7 256.0 0.4x DCLK DoubleClick 128.1 4,455.7 10.0x
remains the most expensive stock in the top 10, though its valuation based on TTM revenues has dropped to 65.8x from 88.6x.
While the top three revenue-generators remain the same since last quarter, E*Trade Groupdrops from the No. 4 slot, the victim of a downturn in online trading volume. EGRP's revenues fell to $330.3 million in Q3 from $407 million in the previous quarter.
Cisco Systemsstill is far and away the Internet's sales champion, with nearly three times the revenue of runner-up AOL.
The cheapest (no pun intended) stocks here are Buy.comand Cheap Tickets, each of which are valued at less than half TTM revenues. However, while Buy.com continues to lose money, CTIX has been profitable for at least the past five quarters.
Among the largest revenue generators, Internet consulting services giant marchFIRSTis the best bargain, trading at 2.7x TTM revenues, though merger-related costs caused MRCH to lose money in the past two quarters. marchFIRST was formed when Whittman-Hart merged with USWeb/CKS.