WEBDEX Tallies Internet User Values
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President Clinton says "no new Internet taxes" and the value of most Internet stocks broke new ceilings for highs. This translated into a value per user in our latest WEBDEX tally of $66.02 on average, while Yahoo! led the eyeball and wallet race at $115.62 per user.
The disparity between the top and bottom illustrates the perceived value gap between firms that essentially deliver many of the same things. Yet so does TV. It's safe to say Super Bowl Sunday commands a higher value than Monday Night Football. Same game, different "context."
We think in the Internet space that "context" may become increasingly important as new users come on for the first time and look for a place to call "home." With 1% of the world on the Web there's 99% to go and more and more innovation to come.
So while we see firms today commanding what look like ridiculous values per page, users should keep in mind that they may indeed be ridiculous in some cases if these companies can't fulfill the pent up expectations Wall Street asks of them.
WEBDEX, Value Per User & Page View
|Web Property||January||Market cap||Value||Average Daily||Value Per|
|Web Brand||Users||or est. PMV *||Per||Page Views||Page View|
|(sorted by value per user)||(millions)||(millions)||User||(millions)|
|Yahoo||26.7||$ 3,087||$ 115.62||65||$ 47.49|
|AOL.com*||11.2||$ 1,000||$ 89.29||30||$ 33.33|
|MSN.com||6.3||$ 500||$ 79.37||22||$ 22.73|
|Lycos-Tripod||7.8||$ 606||$ 77.71||18||$ 33.67|
|Microsoft.com*||15.6||$ 1,000||$ 64.10||35||$ 28.57|
|Excite||12.5||$ 777||$ 62.18||27||$ 28.79|
|Infoseek||11.6||$ 479||$ 41.29||13||$ 38.32|
|AltaVista*||6.7||$ 250||$ 37.31||18||$ 13.89|
|Netscape.com*||20.7||$ 625||$ 30.19||35||$ 17.86|
|GeoCities*||10.4||$ 225||$ 21.63||29||$ 7.76|
|TOTAL||130||$ 8,549||$ 66.02||$ 292||$ 272.41|
|AVERAGE||13||$ 855||$ 66.02||$ 29||$ 27.24|
|Users: Relevant Knowledge; Page Views: Company reports or Media Metrix|
|MarCap on 03.04.98; PMV=estimated private market value|
|WEBDEX is a creation of Mecklermedia|
The most popular TV show in 1972 was "Happy Days." "Star Wars" was the leading box office hit, back in 1976. At one time ABC, CBS, NBC all have been number one in the broadcast network war.
Similarly, in the new Web network era, we expect that today's number one could be tomorrow's number two or three, and vice versa. Outsiders could become number one. AOL did it in online services, coming from third to first. Loyalty on the Web is one click away and our analytical sense tells us values may be just as volatile.